TMI Blog2004 (12) TMI 698X X X X Extracts X X X X X X X X Extracts X X X X ..... ring for the appellants submits that the Modvat credit is available to both the items even when they are cleared at nil rate of duty in view of the Tribunal judgment rendered in case of Commissioner of Central Excise, Tirunelveli v. Sudarsanam Spinning Mills- 2004 (166) ELT 461 (Tri. - Chennai). He furnishes the copy of the said Tribunal judgement. He submits that this citation follows the rulings rendered in the previous orders - (i) Commissioner v. Rajapalayam Mills Ltd. - Final order Nos. 1021- 1022/2003 dated 28.11.2003 (ii) Indore Steel and Iron Mills Ltd. v. Commissioner- 2002(147) ELT 611 (Tri.) (iii) National Engg. Ind. Ltd. v. Commissioner - 2002 (150) ELT161 (Tri.) =2002 (102) ECR 808 (T) (iv) Navasari Oil Products v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different provisions of law. 5. We agree with the view of learned Counsel that the judgment in case of Kirloskar Oil Engines Ltd. (supra) is distinguishable and does not pertain to the facts of this case. The aspects pertaining to the availment of Modvat credit on fuel when it is cleared for manufactured of duty paid as well as exempted goods have been considered in case of CCE, Tirunelveli v. Sudarsanam Spinning Mills -2004 (166) ELT 461 (Tri. - Chennai). The text of the judgment is reproduced below - [Order]. - The Revenue is aggrieved with the Order-in-Appeal No. 75/2003, dated 29.5.2003 passed by the Commissioner of Central Excise (Appeals). Tirunelveli. The respondcnt-assessee are availing credit of duty paid on various inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods except in the circumstances mentioned in sub-rule (2). In sub-rule (2) of Rule6, it was staled that. Where a manufacturer avails of CENVAT credit in respect of any inputs, except inputs intended to be used as fuel, and manufacture such final products which are chargeable to duty as well as exempted goods, then, the manufacturer shall maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of exempted goods and lake CENVAT Credit only on that quantity of inputs which is intended for use in the manufacture of dutiable goods . The appellants1 main contention is that in sub-r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng there by that when a manufacturer avails Modvat credit on an input used as fuel and manufactures a final product or products, a part of which is cleared without payment of duty, he will not be required to pay 8% of the price of such products cleared without payment of duty. A comprehensive and harmonious reading of the above provisions leads me to conclude that the rules have created an exception in respect of inputs used as fuel and neither any Modvat credit is required to be reversed for such inputs used in the manufacture of final products cleared without payment of duty nor such final products arc called upon to pay an amount @ 8% of their price. The same view is expressed in the case of National Engineering Ind. Ltd. v. CCE, J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submits that in view of this order confirming the identical order passed by the same Commissioner (Appeals), there is no merit in the appeal and Revenue's appeal be dismissed. 3. Ld. DR, Shri C. Mani reiterates the grounds of appeal. In the grounds of appeal, the Revenue states that the judgements relied have not been accepted by the department and therefore, they have filed this appeal. 4. On a careful consideration of the submissions, 1 notice that the ground taken by the Revenue to file the appeal is not satisfactory. Once the Tribunal has rendered the judgement, the same is binding on the authorities, unless it is stayed or reversed by the higher authority. Respectfully following the judgment cited including the Final Ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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