TMI Blog2000 (8) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... llant, even though not a small scale unit, availed themselves of exemption under notification No. 1/93 and cleared goods worth about Rs. 30 lakhs without payment of any duty. The learned counsel submits that the appellants had reversed modvat credit on raw materials used in the manufacture of the goods cleared without payment of duty. He, however, concedes that, the appellant, not being a small scale unit was not entitled at all to the benefit of notification No. 1/93. He, therefore, submits that the appropriate action in the appellant's case is to assess all the goods manufactured and removed by them at the appropriate rate of duty (without allowing small scale exemption) and to allow them modvat credit in respect of all the inputs used in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en by the appellant on welding electrodes. Learned counsel for the appellants stated that these electrodes had been used in the appellants' factory for the purpose of repair and maintenance of machinery installed in the factory. Therefore they can be treated as used in relation to the manufacture of the goods. However, these electrodes have no role to play in the production of the goods at all. Further, they were not eligible at the relevant time, for modvat credit as capital goods either. 5. The last demand of about Rs.6,000/- is in respect of collections of about Rs.40,000/- made by the appellants towards charity. Learned counsel submits that the Supreme Court has held that dharmada (charity) charges are not liable to be added to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered while fixing their assessable value. With regard to the demand of duty on account of denial of modvat credit of welding electrodes learned DR submits that the demand is fully justified as the use of the electrodes is admittedly for the purpose of maintenance and repair of the capital goods and not in any way in the manufacture or in relation to the manufacture of the finished goods in question. Since credit was also not permissible as 'capital goods' during the relevant period the appellants were not justified at all in availing themselves of credit on welding electrodes. 7. We have perused the records and have considered the submissions made on behalf of both the sides. The appellants could not have simultaneously availed themselv ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
