TMI Blog2009 (6) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... y has disallowed the credit of duty of excise deemed to have been paid as claimed by the appellant in terms of Notification No. 58/97 to the tune of Rs. 12,84,611/- on the ground that it was wrongly sought to be availed in violation of condition 4 of the said Notification. The appeal carried against the same did not yield fruitful result and the same was dismissed by the Commissioner (Appeals) vide its order dated 8-4-2002. Hence, the present appeal. 3. The appellants are manufacturers of the goods falling under Chapter 84 of Central Excise Tariff Act, 1985 and are holding Central Excise registration. Two show-cause notices dated 2-11-98 and 4-2-99 came to be issued to the appellants alleging wrongful availment of the Modvat credit and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cost thereof, entire expenditure has been borne by the appellants and even the invoices and other documents in relation to the said inputs have been in the name of the appellants and therefore, the same were supplied to the appellants at the place of their choice. Considering the same according to the appellants, there is no violation of condition no. 4 of the said Notification. 4. The learned advocate appearing for the appellant drawing our attention to the said Notification No. 58/97, the Rules 57A and 57F(4), Board Circular No. 331/47/97-CX., dated 30-8-1997, Modvat Scheme Instruction issued under Circular No. 33/94-CX/8, dated 4-5-1994 and placing reliance in the decision of the Apex Court in the matter of Sambhaji Ors v. Gangab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal product of the appellants were manufactured at Ghaziabad and on order by the appellants, they were supplied at Coimbatore in the premises of the job worker of the appellants. It is also undisputed fact that in relation to such inputs, invoices were issued in favour of the appellants and it is also the matter of record that the payment in relation to inputs price was made by the appellants. Considering these undisputed facts, it is to be ascertained as to whether the same amounts to proper compliance of the condition 4 of the Notification No. 58/97 or not. 6. Notification No. 58/97 was issued under sub-rule (6) of Rule 57A of Central Excise Rules, 1944. The said Notification declared that the duty of excise under the said Act shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such inputs in terms of the provisions of Section 3A of the said Act. The clause nowhere relates to any specific premises as being the place where the inputs are required to be delivered to the manufacturer of the final products. The expression received directly relates to the nature of the transaction in relation to the inputs between the manufacturer and the person who supplies the said inputs. The condition requires that the inputs shall be supplied to the manufacturer of the final product by the manufacturer of such inputs and not by any intermediator. Only those inputs which are supplied directly to the manufacturer of the final product could claim benefit under the said Notification. There is no scope for import of the concept of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of the said Notification in manner, which is not contemplated by the government. Under the guise of explaining the Notification, it is not permissible to read down the Notification in such a manner that the condition is virtually modified or amended. The rules of interpretation do not permit to interpret any condition in a manner which would virtually render the benefit sought to be granted to be rendered totally nugatory. 9. In this regard, the decision of the Apex Court in Hemraj Gordhandas (supra), instead of lending any support to the contention sought to be canvassed on behalf of the respondent, supports the view that, we are taking in the matter. The said decision has clearly ruled that it is well established that in a taxing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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