CAPITAL INDUSTRIES Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) The appellants during the period March, 91 to October, 92 utilised Modvat credit availed by them on certain inputs for payment of duty on finished products for which those inputs were not declared as inputs.

(2.) Lower authority have denied this Modvat credit utilization and have ordered the reversal of credit availed, with penalties and interests. The inputs on which the credits were availed were used in the manufacture of final products, which was only on entirely exported. Therefore, the inputs credit as available in the books was used to discharge duty on certain other final products in which the inputs were not and cannot be used.

(3.) After hearing both sides and considering the issues involved, we find that it is a well settled position in Modvat credit that one to one correlation of inputs and the final product is not required to be insisted upon and credit availment and utilisation cannot be denied on simple procedural irregularities.