TMI Blog2002 (2) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... being aggrieved with the Order No. Commr. (A)/48/AHD-II/2001, dated 10-7-2001 passed by the Commissioner of Appeals. 2. Shri Jitendra Singh, learned Advocate, submitted that the Appellants manufacture HDPE/PP sacks and avail Modvat credit of the duty paid on the inputs; that in the month of June, 1994, they purchased PP/HDPE fabrics and availed of Modvat credit amounting to Rs. 2,80,280/-; that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the manufacture of sacks, their final product and the inputs were thus required to be cleared by reversing the credit equal to the amount of Modvat credit earned on the said inputs. The learned Advocate, further, submitted that the denial of Modvat credit is illegal as all the conditions of the Modvat schemes were satisfied inasmuch as the inputs were issued for process and manufacturing and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d cleared the cut pieces of HDPE/PP fabrics on payment of duty, which should be adjusted from the demand made under the Adjudication Order. 3. Shri V.K. Verma, learned DR, on the other hand, submitted that the appellants had not used the inputs brought by them in the manufacture of their final products namely, sacks and accordingly no Modvat credit is admissible to them; that mere process of cut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the final product is HDPE/PP sacks. Further admittedly appellants had only cut the Rolls of fabrics into pieces of required sizes, a process which does not amount to manufacture. The appellants have, thereafter, instead of manufacturing sacks, sold the pieces of HDPE/PP fabrics. It is thus evident that the inputs were not used in or in relation to the manufacture of the final product manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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