ASHOK LEYLAND Vs. CCE

JUDGEMENT

(1.) Heard both sides. This case falls within the jurisdiction of Single Member. As such, the same is taken up for hearing and disposal by me with the consent of both sides even though the case was listed before the Division Bench which is not sitting today. Shri R. Raghavan, Ld. Advocate, appearing for the appellants states that the impugned goods in respect of which input duty credit was taken had become scrap at the time of clearing the same at scrap value from the appellant's factory. He states that duty has been paid on the scrap value at the time of clearance but the department is demanding for reversal of the entire credit. He further states that in respect of the appellants themselves, for an earlier period, the same issue had arisen and the Tribunal had set aside the demand holding that modvat credit is not deniable in such cases in view of the provisions of Rule 57D of the Central Excise Rules, 1944 vide Ashok Leyland Ltd. v. CCE, Chennai 2002 (149) ELT 1096 (Tri. -Chen.).

(2.) Heard the Ld. SDR.