TMI Blog2009 (5) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaged in the manufacture of Pipe fitted with Flange and pipe fittings classifiable under Sub-heading 7318.10 and 7319.90 of the Schedule to the Central Excise Tariff Act, 1985. They received inputs namely, M.S. Pipes and Pipe fittings falling Sub-heading 7306.90. The appellants availed credit on the inputs. Pipes were welded with flanges and cleared under the description of Black Pipes with Flanges 260 mm and 360 mm for export under bond. The appellant utilized credit in respect of clearance of goods for home consumption. Show cause notice was issued proposing to deny Modvat credit of Rs. 2,28,055/- on the ground that the processes undertaken by the appellants do not amount to manufacture. Original authority confirmed the demand of duty an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the manufacture of final product. He further submits that Board s circular and the case law relied upon by the learned Advocate are in respect of utilization of credit, which was not relevant in the present case. 5. After hearing both sides and on perusal of the records, I find that the appellant received duty paid pipes and welded with flanges in their premises and cleared pipes with flanges for export. It is seen that the exported goods were cleared under bond and, therefore, they have utilized the credit towards payment of duty on final products for home consumption. The main contention of learned D.R. is that the process undertaken by the appellants does not amount to manufacture and, therefore, they are not eligible for credit. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xported under bond as such the Modvat Credit undertaken by the appellants can be used in the manner as provided under Rule 57F of the Rules. It has also been relied upon the Board s circular wherein it has been clarified that clearance of inputs as such for export under bond can be utilized in the same manner as it is provided for a final product under Proviso to Rule 57F(4) . The relevant portion of the findings of the Tribunal is reproduced below :- We have considered the submissions of both the sides. Modvat Credit of the duty paid on the goods received by the appellants has been disallowed by the Commissioner under the impugned order on the ground that the processes undertaken by them do not amount to manufacture as no new product ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n cases of export of final products or intermediate products under bond. Export of inputs as such under bond were treated as final product by virtue of deemed manufacture clause (i.e. the expression as if such inputs have been manufactured in the same factory) under the erstwhile Rule 57F(1) (ii) which covered all such cases within the ambit of proviso to Rule 57F(4). This expression was omitted by Notification No. 28/95-C.E., (N.T.) dated 29-6-1995 with a view to simplify the clearance procedure, which has created a doubt in respect of utilisation of credit in such cases. It is not the intention of the Government to debar such manufacturer-exporters from utilising credit. Clearance of inputs as such for export under bond can still ..... X X X X Extracts X X X X X X X X Extracts X X X X
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