TMI Blog2012 (4) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... t:- the assessee is not a manufacturer of goods as held by this Court that the assessee was only assembling Cable Jointing Kits - availment of MODVAT credit at the relevant time was justified since it was compelled to pay central excise duty on Cable Jointing Kits - the assessee did not act in an illegal manner and for this reason the action taken under the show cause notice issued to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it on the inputs. 4. On the issue of exibility, the matter was settled by this Court and it was held that no manufacture was involved in the assembling of Cable Jointing Kits. 5. Under these circumstances, the assessee preferred a refund claim on the central excise duty that it was compelled to pay. The refund application was rejected by the Assistant Commissioner by his order dt.6.5.1998. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee. 8. Acting upon the liberty granted by the Tribunal, the Revenue issued a show cause notice to the assessee proposing to recover the MODVAT credit of Rs.51,00,000/- utilized by the assessee towards payment of duty on inputs cleared. The Revenue also sought to deny the MODVAT credit claim of Rs.1,91,00,000/- since it was intended to be utilized towards payment of duty on the fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to the conclusion that the proceedings for denial of refund of the MODVAT credit by reversal of the entries in the profit and loss account is a separate issue altogether and necessary steps ought to have been taken by the Revenue in this regard. 10. In our opinion, the view taken by the Tribunal is unexceptionable. Rule 57C of the Central Excise Rules, which is relevant for the present purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee would be entitled to claim a benefit on a future date or avail it from a future date does not arise for consideration. All that can be said is that at the relevant time, the assessee did not act in an illegal manner and for this reason the action taken under the show cause notice issued to the assessee was not justified. 12. In our opinion, no substantial question of law arises for cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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