TMI Blog2003 (1) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... rt DOT). The said pipes were cleared on payment of Central Excise duty. They availed MODVAT Credits of duties paid on granules brought to its factory and used for manufacture of the said pipes. AH formalities under the MODVAT Scheme were also duly complied with by the appellants. The Modvat Credits in question have been disallowed by the Commissioner by holding, inter alia, that to meet the specifications of DOT, the appellants could only use specific grades of granules whereas MODVAT Credit was taken by it on unrecommended grades of granules. 1.1. Shri S.K. Bagaria, learned Advocate for the appellants submits that as per the contracts with DGS D, the HDPE Pipes were required to conform to DOT Specification. As per the said specification, HDPE Granules were required to conform to Grade PEEWA-45T006 of IS 7328:1992 or any other standard equivalent grade and meet the density parameters of a particular temperature and melt flow rate. 1.2 He also submits that they have received letters from the manufacturers of the HDPE Granules who have certified that by blending various grades conforming to the DOT Specification, HDPE Pipes are manufactured. In this connection, learned Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation Ltd. which was addressed to the Directorate General of Anti-Evasion (CE), stated that blending of various polymer resins sometimes improve the processing and quality of the end-product, though the generalisation could not be done in this area. 1.3. He also gave a brief on behalf of the appellants and submitted that the appellants have manufactured HDPE Pipes and cleared the same on payment of duty. There is no evidence that the appellants had received any other granules for manufacture of the said Pipes or that the granules on which it had availed the MODVAT Credit, were not used at the factory. In those circumstances, there was no scope to allow this Credit. In other words, they were entitled for taking MODVAT Credit on any type of duty paid on HDPE granules. He, further, submits that the manufacturers normally use any unspecified raw materials and it is a matter solely and exclusively between the manufacturer and its buyer. In other words, even though they use the raw materials of another unspecified category, then also the MODVAT Credit on such raw materials cannot be disallowed on any ground. They also submit that the fact that Pipes with the required grade can b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limitation. They have disclosed all these information in RG-23, Part-I register as well as in the RT 12 monthly Returns. It was submitted that the Central Excise Invoices and Bills of Entry relating to the said granules seized by the Department were defaced by it. The appellants had all along openly purchased different grades of granules and brought the same to their factory duly accompanied by the requisite duty paying documents and used such granules for the manufacture of pipes for supply to DOT and despatched such manufactured pipes to DOT after inspection by DGS D. The appellants took MODVAT Credit of the duty paid on the granules purchased by it and submitted all the necessary returns and documents to the Department from time to time according to the statutory requirements. He also submits that in the entire order passed by the Commissioner, there is absolutely no material or evidence or basis to show that the appellants ever received any other granules for manufacture of its final products or that the granules on which MODVAT Credits were taken by the appellants, were not received at the factory or were ever cleared from the factory as such. Admittedly, the final products i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Relen E41003 grade or equivalent grade whereas they have taken MODVAT Credit on other grades of non-recommended granules. The learned SDR also pointed out to the finding of the learned Commissioner that the Central Institute of Plastic Engineering and Technology, the authority in this aspect, also confirmed that the impugned raw materials were not suitable to manufacture HDPE Pipes according to DOT Specification. Learned SDR, therefore, submits that the MODVAT Credit taken on the non-recommended granules on the strength of such document is invalid pertaining to raw materials which were not used by them in or in relation to the manufacture of final product i.e. HDPE Pipes of DOT Specification. Shri Mondal, further, submits that the letter dated 15.2.2000 issued by Central Institute of Plastics Engineering Technology had been issued to M/s. Plastics Concern, Kolkata, should not be relied upon by the Tribunal for deciding the case, as the same was obtained after the decision of the learned Commissioner was communicated. 3. We have considered the rival submissions and perused the records. We have also gone though the findings of the learned Commissioner and also submissions made b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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