MARVEL VINYLS LTD. Vs. CCE

JUDGEMENT

(1.) THOUGH both the appeals filed by M/s. Marvel Vinyls Limited. Are posted for hearing the stay application filed by them, I take up the appeals. Itself, after staying the recovery, for disposal as the issue involved is in a very narrow compass.

(2.) SHRI Rajesh Chhibber, learned Advocate submitted that the Appellants manufacture PVC Sheeting/Films, Floor Covering and PVC Foamed Fabrics; that they availed the Modvat Credit of duty paid on the inputs; that they have filed declaration in respect of rejected PVC Sheeting and PVC Laminated Fabrics as their inputs; that on receipt of the rejected PVC Sheeting, they took Modvat Credit, melted the same along with other chemicals/materials for the manufacture of fresh goods; that the Department has disallowed the Modvat Credit on the ground that the final products cannot be the inputs of the final products. The learned Advocate submitted that the issue involved in the present appeals stands settled by the decision of the Larger Bench of the Tribunal in the case of Hindalco Industries Limited v. CCE, Allahabad 2000 (38) RLT 986 (T), wherein the Tribunal allowed Modvat Credit in respect of defective/rejected final products cleared by the Appellants therein on payment of duty and received back and used in or in relation to the manufacture of final products. He also referred to the decision of another Larger Bench of the Tribunal in the case of CCE, Meerut v. Tin Manufacturing Co. and in the case of CCE v. Bhushan Steel and Strips Limited .

(3.) COUNTERING the arguments, Shri S.C. Pushkarna, learned JDR, submitted that the finished products cannot be an inputs for the manufacture of the same finished products; that in some cases the goods were even returned from their own warehouse.