TaxTMI 
TaxTMI 
2013 (4) TMI 277
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....Tax Appellate Tribunal, West Zonal Bench, Ahmedabad ("the Tribunal"), by which the appeals preferred by the respondents before us were allowed. 3. The respondents are engaged in the manufacture of dyes and dye intermediates. The respondents purchased certain raw materials like Aniline & Beta Napthol and sent those to a job worker for conversion and thereafter, the job worker converted those materials into necessary intermediate goods and sent those goods back to the selfsame respondents, namely, manufacturer of final product. 4. The respondents manufactured their final product in the form of dyes. The job workers, instead of sending back those materials using the Challans without payment of duty, decided to pay duty and cleared ....
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....rred by the appellants before it. 8. Mr. D.V. Parikh, learned Senior Counsel, appearing on behalf of the respondents, on the other hand, opposed the aforesaid contention of Mr. Ravani and by relying upon a three-judge-bench decision of the Supreme Court in the case of International Auto Ltd. v. Commissioner of Central Excise, Bihar, reported in 2005 (183) E.L.T. 239 (S.C.), submitted that the questions so raised by the Revenue are fully answered by the Supreme Court in the above decision and the selfsame principle has been followed by the Tribunal. Mr. Parikh, therefore, prays for dismissal of these appeals. 9. After hearing the learned counsel for the parties and after going through the materials on record, we find that in the ....
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....nufacturer of the final product, according to the appellant, was permitted to remove the inputs to a place outside the factory for the purpose of manufacture of intermediate products so that they return to the factory for further use in the manufacture of final product. The appellant therein contended that in such a case, the credit can be taken by the manufacturer of the final product on the inputs purchased by it which are made available to the intermediate product produces. According to the appellant therein, Modvat credit is taken by the manufacturer of the final product on the inputs supplied by it to the manufacturer of the intermediate products which credit is reversed ultimately when the final product is removed from such manufactur....
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....e value of the wagons. This Court came to the conclusion that it could. The first distinguishable feature is that this Court in that case was neither concerned with the Modvat scheme, nor with the provisions of Rule 57F(2)(b). Furthermore, the Court was not considering a situation where the question was of the liability of an intermediate product being subjected to excise duty. What was in consideration was the final product, namely, wagons." 13. If we apply the aforesaid principle to the facts of the present case, there is no dispute that according to the modvat scheme, it is the modvat of such final product which would have to include the cost of the inputs and in respect of which Modvat credit could be taken at the time of clearanc....