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TMI Blog2005 (4) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... er per : V.K. Agrawal, Member (T)]. - In this appeal filed by M/s. Navbharat Explosive Co. Ltd. the issue involved is whether Modvat credit of the duty paid on inputs is available when the finished products are cleared without payment of duty following Chapter X procedure. 2. As the Appellants have requested to decide the appeal on merit we heard Shri H.C. Verma, learned D.R., and perused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D.R. submitted that the Modvat Credit is available only when the goods are not exempted from payment of duty. He relies upon the decision of the Larger Bench of the Tribunal in the case of Orissa Extrusion Ltd. v. CCE, 1996 (83) E.L.T. 308 (T) = 1996 (13) RLT 481 wherein the Larger Bench has held that credit is not available for the inputs used in or in relation to the manufacture of exempted fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Larger Bench of the Tribunal in the case of Kirloskar Oil Engine Ltd. v. CCE, Pune - 1994 (73) E.L.T. 835 (T) = 1994 (4) RLT 296. The Larger Bench of the Tribunal again considered this aspect in the case of Orissa Extrusion Ltd. and observed that Kirloskar Oil Engine decision was not available when the Premier Tyre case was decided. The Larger Bench held that "the mere fact that at the time of ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment of duty is not the same thing as goods wholly exempt or goods chargeable at nil rate of duty, therefore, the provisions of Rule 57C are not attracted." In the present matter it has not been disputed that the explosives are fully exempt from payment of duty. In view of this, Modvat credit has been rightly disallowed to them. However, in view of the fact that the Appellants were following the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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