TMI Blog2001 (8) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... been imposed under Rule 173Q and 57-I read with Section 11AC of the Central Excise Act, along with confirmation of interest at the rate of 24%. 2.The appellants are engaged in the manufacture of Carbon Black, which is one of the principal raw material for the manufacture of tyres. During the relevant period, the appellants were availing the Modvat credit and were clearing their final product carbon black on payment of duty. However, some of the clearances were effected without payment of duty under the provisions of Rule 13 inasmuch as the carbon black was to be used in the manufacture of tyres which were ultimately to be exported by the tyre manufacturers. The clearances without payment of duty under the provisions of Rule 13(1)(b) read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultant appearing for the appellants and Shri Mewa Singh, learned SDR for the Revenue. The impugned order has been assailed on merits as also on the point of limitation. 5.The appellants have strongly relied upon the Tribunal's decision in the case of Orissa Synthetics Ltd. v. CCE, Bhubaneswar reported 1995 (77) E.L.T. 350 (T) laying down that in respect of removal of goods without payment of duty in terms of Notification issued under Rule 191BB, such removals cannot be treated as duty exempt clearances attracting the Board's circular issued under Rule 57C with regard to availability of Modvat credit on the inputs. Reliance has also been placed upon a number of other decisions of the Tribunal as also on the decision of the Hon'ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he inputs used in the manufacture of carbon black cleared without payment of duty under the provisions of Rule 13(1)(b). The Tribunal in the case of Orissa Synthetics Ltd. has held that duty paid on the inputs used in the manufacture of man-made staple fibre cleared without payment of duty under Rule 191BB read with Notification No. 33/90-C.E. cannot be equated to clearances of the final product attracting nil rate of duty or exempted from payment of duty. In these circumstances, Rule 57C is not applicable and the Modvat credit in respect of the inputs cannot be denied to the assessee. We find that Rule 191BB was omitted w.e.f. 1-10-1994 and the situations covered under the said Rule were included in Rule 13. As such the ratio of the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -3-1995 onwards when the appellants were asked to reverse the Modvat credit availed on the goods cleared without payment of duty. Thereafter, a lot of correspondence was exchanged between appellants and their jurisdictional Central Excise authorities, who were of the view that appellants were required to reverse the input credit. The situations mentioned under Rule 57-I for invocation of longer period of limitation are when Modvat credit is taken by reason of fraud, wilful mis-statement, collusion, suppression of facts or any contravention of any provisions of the Act or Rules made thereunder with intent to evade payment of duty. Inasmuch as the entire circumstances were before the Revenue, it cannot be inferred that appellants made any att ..... X X X X Extracts X X X X X X X X Extracts X X X X
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