BEEKALENE FABRICS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) THE appellants are engaged in the export of man made fabrics after getting them processed on job work basis from the processors. The said processors are also engaged in the manufacture of industrial fabrics falling under sub -heading No. 5911.90.

(2.) THE processors were availing Modvat credit under Notification No. 5/94 -C.E. (N.T.), dated 1 -3 -1994 on industrial fabrics falling under sub -heading 5911.90 was concerned. They were also availed deemed credit under Notification No. 29/96 -C.E. (N.T.), dated 3 -9 -1996 at the specified rates so far as their processing on grey fabrics falling under Chapter 54 and received on job work basis. After processing the grey fabrics falling under Chapter 54 and 55 by the processors were exported.

(3.) THE availment of deemed credit under Notification No. 29/96 -C.E. (N.T.) was objected to and the Preventive Officers forced to reverse unutilized credit balance in their RG -23A Part -II and the same was reversed under protest on 29 -1 -1998 which was restored by the Commissioner (Adj) vide Order -in -Original No 1 of 1999 dated 17 -5 -1999.