TMI Blog2016 (1) TMI 1313X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case, explosives removed from the factory under chapter X Procedure is exempted from the whole of duty of excise leviable in terms of N/N.191/87 dated 04.08.1987. Since the said Notification exempts explosives from payment of duty, the embargo created in Rule 57C of the Central Excise Rules, 1944 will be applicable in the present case, and thus, Modvat credit on the inputs used in the manufacture of the said exempted product is not available to the manufacturer. Appeal dismissed - decided against appellant. - E/2986/2005-EX[DB] - A/56517/2016-EX[DB] - Dated:- 11-1-2016 - Mr. S.K. Mohanty, Member (Judicial) And Mr. B. Ravichandran, Member (Technical) Present for the Appellant: Ms. Priyanka Goel, Advocate Present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the Tribunal. 3. Ms. Priyanka Goel, ld. Advocate appearing for the appellant submits that removal of goods under Chapter X Procedure is neither exempted goods nor attracts nil rate of duty. Thus, the embargo created in Rule 57 C of the Rules will have no application and taking of Modvat credit on the inputs used for manufacture of explosives removed under Chapter X procedure is correct and proper. To support her stand that Modvat benefit cannot be denied to the appellant, the ld. Advocate has relied on the decision of this Tribunal in the case of Aureola Chemical Ltd. Vs. Commissioner of Central Excise, Indore reported in 2004 (175) ELT 148 (Tri.-Del.). 4. On the other hand, the ld. D.R. Shri R.K. Grover appearing for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants have removed the explosives without payment of duty under an exemption notification following the procedure laid down in Chapter X of the Central Excise Rules, 1944. Rule 57C of the Central Excise Rules clearly provides that no Modvat credit shall be available, if the final product is exempted from payment of whole of the duty of Excise or is chargeable to nil rate of duty. As the explosives, their final product, are cleared by the Appellants without payment of duty, Rule 57C is applicable and they will not be eligible for the benefit of Modvat credit. This was the view taken by the Larger Bench of the Tribunal in the case of Kirloskar Oil Engine Ltd. v. CCE, Pune - 1994 (73) E.L.T. 835 (T) = 1994 (4) RLT 296. The Larger Bench of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involved is 1993 before the decision passed by the Larger Bench of this Tribunal there is no case made out for imposition of penalty. Accordingly we set aside the penalty imposed on the Appellants. The appeal is disposed of in these terms. 7. The decision cited by the ld. Advocate for the appellant is not applicable to the facts and circumstances of the present case inasmuch as in the said decided case, the finished product manufactured is different and the interpretation placed relates to the Provisions of Rule 57 CC; whereas, in the present case, since the issue is squarely covered by the decision of this Tribunal in the case of Navbharat Explosive (supra), we are of the view that the ratio of the said decision is applicable for ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
