CCE Vs. MEGHDOOT PISTONS (P) LTD.

JUDGEMENT

(1.) HEARD both sides and perused the records.

(2.) THE dispute is whether the appellant is entitled to refund of un -utilized Modvat credit taken on inputs which were used in the production of exported goods. The appellant is a manufacturer of aluminium pistons and was taking credit of central excise duty paid on inputs. The Aluminium Pistons so manufactured out of modvatable imports were exported through merchant exporters. The merchant exporters claimed customs drawback. When the appellant claimed refund of outstanding Modvat credit on the inputs, the claim was rejected on the ground that allowing of refund of Modvat credit would be double benefit as the Merchant exporters availed of draw back benefit. The respondent -manufacturer went on appeal before the Commissioner and the Commissioner allowed the appeal in favour of the respondent. The present appeal is directed against that order. The finding of the Commissioner may be read:

(3.) THE contention of the ld. counsel for the respondent is that the view taken by the Revenue is not correct in as much as there is no repeat benefit. It is being pointed out that draw back was in regard to Customs duty only, while the claim of the appellant is in regard to central excise duty. Ld. Counsel has submitted that these two benefits are separate and relate to different duties, first being duty of customs and second being duty of excise. It is the submission of the ld. Counsel that the correct position remains clarified by the -Cus dated 16.10.2000 of the Central Board of Excise and Customs as under: