TMI Blog2004 (3) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... er]. Heard both sides. Shri M.H. Patil, learned Advocate appearing for the appellants states that the appellants manufactured fabrics which they cleared without payment of duty to their job workers for conversion to made-up goods which are cleared without payment of duty for export under bond. A small portion of such made-ups are not exported due to reasons like cancellation of export orders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modvatable against additional duty payable on Chindies and arising in the course of manufacture of made-ups. He also states that though the procedure for availing Modvat credit has not been followed on account of the fact that the goods were initially cleared for export and the duty on both fabrics and made-ups has been paid subsequently on diversion to the domestic market, the appellants are sti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so draws support from the observation of the Apex Court in Para 63 of its decision in the case of ITW Signode India Ltd. v. Collector of C.E. - 2003 (158) E.L.T. 403 (S.C.). He also cites the decision of the Apex Court in the following two cases in which adjustment of duty paid on the finished goods has been allowed. (1) Bhilwara Synthetics Ltd. v. C.C.E. Jaipur - 2002 (143) E.L.T. 22 (S.C.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no specific rules to allow Modvat credit in situations like the present one where duty has not been paid initially and the laid down procedure, therefore, has not been followed. However, even in the absence of any such provision, the Tribunal has allowed credit in the case of Bharat Wagon Engg. (supra) and Ajay Industrial Corporation (supra) taking a cue from the Apex Court decision in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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