COMMISSIONER OF CENTRAL EXCISE Vs. GRAND CARD INDUSTRIES

JUDGEMENT

(1.) REFERENCE under section 35G(1) of the Central Excise Act, 1944 has been received from the Custom, Excise & Gold (Control) Appellate Tribunal on the following question of law:

(2.) THE Respondent Assessees instead of claiming benefit under the exemption notification sought to take benefit of the Modvat Credit under rule 57A of the Central Excise Rules, 1944 (hereinafter referred to as the Rules) and paid full duty on the inputs used in the manufacture of final products to avail Modvat Credit. The credit was sought to be utilized for payment of duty on the final product.

(3.) THE Commissioner of Central Excise (Appeals) vide his order dated 15.09.1995 denied Modvat credit to the tune of Rs. 3,16,095/ - in the case of Grand Cord Industries and Rs. 9,01,754/ - in the case of M/s. Jhunsons Chemicals. The authorities held that an Assessee being covered under the said exemption notification had no option and the Modvat credit was not admissible under Rule 57C.