CCE Vs. ASSOCIATED CEMENT COMPANY LTD.

JUDGEMENT

(1.) By this appeal, the Revenue challenges the Order -in -Appeal No. 127/92 dated 25.5.92 by which the Commissioner (Appeals) has set aside the order of the original authority and allowed the appeal of the party holding that there was no provision to expunge the credit rightly taken during the period when the HOPE bags were eligible inputs.

(2.) After hearing both the sides, the operative portion of the order rejecting, the Revenue appeal was pronounced in the open Court on 18.7.2003.

(3.) The brief facts of the case are that the assessee -respondents manufacture cement and they were availing modvat credit facility in respect of HDPE bags which is one of the inputs for the manufacture of the final product. The said bags became ineligible for the benefit of modvat credit with effect from 17.9.90 by Notification No. 35/90 -CE (NT) dated 17.9.90. At that time the respondents had a credit balance of Rs. 2,07,932.49 in their RG 23A Part II in respect of HOPE bags received prior to 17.9.90. While the assessee have reversed the credit taken in RG 23A Part II in respect of the HOPE sacks received after the issue of notification they have not reversed the credit amounting to Rs. 2,07,932.49 which pertained to the HOPE bags lying in stock as on 17.9.90. It was in these circumstances that show cause notice was issued which culminated in the order of the original authority holding that credit of the above -noted amount is required to be expunged. On appeal, the Commissioner (Appeals) allowed the appeal of the assessee -respondents.