SUPREME INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) The challenge in the above appeal is to the confirmation of the duty demand of Rs. 7,40,62,116/ - on the ground that the appellants who are manufactures of Plastic Crates had availed of credit of duty on inputs viz., Silicon Spray used in the manufacture of Plastic Crates which was contrary to the condition stipulated at serial 14 of the table to Notification Nos. 15/94 -CE, 08/96 -CE and 04/97 -CE. The demand of Rs. 5,788/ - confirmed on shortages is not the subject matter of the appeal before us. The penalty of amount equal to the duty confirmed as a result of denial of Notification No. 15/94 is also challenged by the appellant.

(2.) We have heard both sides. We find that the appellants had availed of modvat credit of Rs. 5,261/ - on silicon spray during the period December 1995 to July 1998, and reversed this amount of credit on 14.10.1998. The question before us is as to whether the availment of credit of duty paid on the inputs automatically disentitled the appellants to the benefit of the notification in question.

(3.) We find that this issue has been decided by the Hon'ble Supreme Court in the case of Chandrapur Magnet Wires (P) Ltd. v. CCE, Nagpur in the context of Notification No. 69/86 -CE, as amended by Notification No. 106/88 -CE.