9911796707
TMI Blog2002 (10) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... sp; Since the said bulk drug (the final product) was chargeable to "nil" rate of duty on being classified under Sub-Heading 3003.20 Modvat credit on the inputs utilised for the manufacture of the said bulk drug was not admissible and the Assistant Commissioner's finding in this respect is upheld. (iii) As regards reversal of Modvat credit already availed by the appellant, the matter remanded to the Assistant Commissioner for re-examination in the light of this Hon'ble Tribunal's earlier order setting aside the demand on the ground of the demand being barred by limitation, since the said order of the Tribunal covered a common period as involved in the impugned order of the Assistant Commissioner. 2. The bulk drug being m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... argeable to 'nil' rate of duty during the period 16-3-95 to 20-2-98. The Asstt. Collector confirmed this notice which was upheld by the Commissioner (Appeals) and hence the present appeal. 4. We have considered the submissions made by both the sides and the material on record and find - (a) The said product is a specified bulk drug in terms of drugs licence issued by the Drug Control, Govt. of West Bengal and is covered by the Drugs Price 'Control' Orders and specified in the Pharmacopoeia. It is undisputedly a drug under the category "other bulk drugs". Therefore, by Chapter 2(I)(b) of Chapter 30 of Central Excise Tariff it would be covered under the definition of medicament. There is however nothing brought on re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... approval before the Asstt. Collector cannot give him the right to issue and determine the eligibility of Modvat credit claimed. Denial of Modvat credit and its recovery by a notice could be effected and made under rule 57-I. A perusal of the notice dt. 30-12-98 issued, indicates and reads as follows :- ".......Whereas it further appears that the assessee has declared in the corresponding classification lists Declaration referred to above that they would be availing Modvat Credit of Central Excise duty paid on inputs to be utilised for manufacture of Quiniotochlor I.P. in contravention of Rule 57G of Central Excise Rules, 1944 in much as Quiniotochlor I.P. being rightly classifiable under Chapter sub-heading 3003.20 of Central Excise Tariff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llegations or and material for considering the extended period as prescribed under Rule 57-I(1)(ii) have been found on a perusal of this show cause notice dt. 20-12-98. The demands therefore of reversal of Modvat credit, ordered and as determined by the lower authorities cannot be upheld in pursuance of this notice within the time prescribed under Rule 57-I(1)(i). The following findings of the Asstt. Collector, therefore upheld by the ld. Commissioner (Appeals) : The said assessee is directed to reverse the Modvat credit availed on questioned inputs and/or pay the same if utilised within 1 (one) months of receipt of this Notice. cannot be upheld. 5. In view of our findings, the orders of the lower authorities are set aside and the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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