TMI Blog2002 (1) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... lahabad High Court and Collector of Central Excise Customs, Cochin v. Premier Tyres Ltd. - 2001 (130) E.L.T. 417 of Kerala High Court. Since the decision of the Kerala High Court was rendered following a decision of the Supreme Court in Collector of Central Excise, Pune v. Dai Ichi Karkaria Ltd. - 1999 (112) E.L.T. 353 (S.C.), it was felt that the matter need not go before 7 Member Bench in spite of the decision of the Larger Bench of the Tribunal in Khanbhai Esoofbhai v. Collector of Central Excise, Calcutta - 1999 (107) E.L.T. 557 (Tribunal-LB). 3.The issue that arises for consideration is whether credit availed and utilised under the Modvat Scheme during the period when the final products were dutiable is required to be reversed whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd also utilised already, then such utilisation was irregular and had to be recovered. 4.On appeal by the assessee, Commissioner (Appeals) took a different view. According to him, the assessee is entitled to claim refund in respect of the credit which they had already utilised while clearing their final product at a time when it was dutiable. He took the view that there is no provision in law to recover the credit of duty on inputs which has been availed and utilised at the material time in the clearance of final product. He placed reliance on the decision of the Supreme Court in Eicher Motors Ltd. v. Union of India - 1999 (106) E.L.T. 3 and certain other decisions. We find no reference in this order to the decision of the Allahabad High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above view reliance was placed on the Supreme Court decision in Dai Ichi Karkaria Ltd. 6.Before the Supreme Court the Attorney General drawing support from the decision in Super Cassettes Industries Ltd. contended that there could be no final credit until the inputs were used and excise duty on the final product was paid or the inputs were otherwise disposed of. The submission was that the credit was a contingent credit. It might be disallowed under certain circumstances. The manufacturer did not have any indefeasible right or title to it. The credit of excise duty on the raw material in the register maintained for Modvat purposes was only a book entry which might be utilised later for payment of excise duty on the excisable product. In o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en against the excise duty on a final product manufactured on the very day that it becomes available." 7.The learned Departmental Representative very staneously argued interpreting different provisions relating to the Modvat Scheme that availing of Modvat credit was not irrevocable and when subsequently the end product was exempted from duty the entry has to be reversed even if the credit has been utilised by the time. He placed reliance on the following decisions of the Supreme Court in - (1) CCE, Meerut v. Modi Rubber Ltd. [2001 (133) E.L.T. 515 (S.C.)] (2) CCE, Jaipur v. Raghuvar (India) Ltd. [2000 (118) E.L.T. 311 (S.C.) = 2000 (38) RLT 777 (S.C.)] (3) Chandrapur Magnet Wires (P) Ltd. [1996 (81) E.L.T. 3 (S. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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