TMI Blog2003 (11) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 27-2-1998 by which the learned Commissioner (Appeals) has confirmed the lower authority's order disallowing the Modvat credit in terms of Rule 57-I of Central Excise Rules, 1944. The appellants manufactured pharmaceutical products falling under Chapter 30 of the Central Excise Tariff Act, 1985. Among the pharmaceutical products, they manufacture Ampicillin capsules which are exclusively for exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stt. Commissioner. He, therefore, held that credit availed on the input needs to be expunged in terms of Rule 57-I inasmuch as no credit of duty is allowable on inputs when final products are cleared at nil rate of duty as per Rule 57C. Appellants contended that even if the final product is exempted, credit availed cannot be denied if the appellants have paid the duty on the final product; that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been taken on account of an error, omission or misconstruction on the part of the manufacturer; that these three requirements are not satisfied in the instant case. 2. The Commissioner (Appeals) did not agree with their contention and dismissed their appeal and hence appellants are aggrieved with his order. 3. Learned Counsel Shri Saravanan submitted that the issue is now covered in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. DR reiterated the departmental contention. 5. On a careful consideration of the submissions, and on examining the cited case-law in the case of Norris Medicines Ltd. v. CCE C, Surat (supra), it is seen that the judgment is identical to fact of the case. The Bombay Bench in the above case has allowed the assessee's claim and held that once the export has been made under bond then modvat cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty on inputs. The interpretation placed by the lower authorities on Rules 57C, 57CC and Rule 57F is clearly against Government policy to encourage export and free export products from domestic levies. I have, therefore, no hesitation in setting aside the orders of the lower authority and allowing the appeal. Before parting with the case, it is suggested that the rule making authority should c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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