ASHOK LEYLAND LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Both these appeals raise a common question of law and facts and appeals arise from Order -in -Appeal No. 96/2000 and 97/2000 dt, 19.7.2000 by the Commissioner (Appeals), Chennai. The order of the Commissioner (Appeals) in para 6 in the impugned order is extracted below:

(2.) Appearing on behalf the appellants Ld. Counsel Shri R. Raghavan submits that the additional duty paid on inputs on price revision can be taken as credit under Rule 57E of the Central Excise Rules, 1944 although the inputs had been sold in the spare part market. While removing the inputs there was a upward price revision for sales in the spare parts market. Ld. Counsel clarifies that the price on spare parts was on higher duty paid on the rate of the spare parts while removing the goods besides reversing the credit taken on the inputs. He submits that 57E Certificate was issued to the appellants by supplier of inputs and countersigned by the Superintendent and a certificate issued under Rule 57E makes the assessee eligible for taking modvat credit. He submits that the requirement of Rule 57E is that: -