THANE BELAPUR INDUSTRIES ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioner, an association of industries, has filed this petition mainly seeking the quashing of the circular No. F-296/46/97/CX-9 dated 14.1.1998 issued by the Central Board of Excise and Customs, also seeking setting aside of consequential OR 'follow-up' orders issued by the subordinate officers of the Central Excise to various industries at various places The impugned circular is a telex message addressed to all Chief Commissioners Commissioners of Central Excise throughout the country. It reads as under :-

(2.) The grievance of the petitioner may briefly be stated. According to them the MODVAT scheme was introduced by the Central Govt in the year 1986 with the object of avoiding multi-point and cascading effect of taxation. The scheme allows the manufacturers of various products to take credit of the excise duty paid on the inputs used by them or in relation to the manufacture of the final products while paying the excise duty on the final products manufactured by them. The manufacturers can pay he duty from the credit earned by them on the inputs. If any balance duty is payable then the same is paid in cash. For availing the facility of MODVAT scheme the manufacturers have to follow the prescribed procedure and maintain the requisite records. The scheme has to be found contained in Rules 57A to 57J of the Central Excise Rules, 1944.

(3.) Feeling impressed by the contentions so raised, this Court directed a notice to show cause against the issuance of rule nisi to be issued to the respondent.