LAWS(CE)-2009-4-215

JANARDHAN PLYBOARD INDUSTRIES LTD. Vs. CCE

Decided On April 20, 2009
JANARDHAN PLYBOARD INDUSTRIES LTD. Appellant
V/S
CCE Respondents

JUDGEMENT

(1.) THE relevant facts of the case, in brief, are that the appellants are engaged in the manufacture of Plyboard and Articles of Wood classifiable under Heading No. 4408.90 and 4410.11 of the Schedule to the Central Excise Tariff Act, 1985. Show cause notices were issued proposing to reverse the credit amounting to Rs. 1,43,169/ - on the inputs, which were used in the manufacture of exempted goods under and , both dated 10.06.2003. The Original Authority dropped the demand of duty. The Revenue filed appeal before the Commissioner (Appeals). By the impugned order, the Commissioner (Appeals) held that the Modvat credit on the inputs contained in finished goods lying in stock/work in process at the time of exercise of option of exemption notification is not available to the appellants. Hence, the appellant filed this appeal.

(2.) AFTER hearing both the sides and on perusal of the records, I find that the issue has already been decided by the Tribunal in the case of Apco Pharma Limited v. CCE, Meerut -I vide Final Order No. 183 of 2009 -SM (BR) dated 9.2.2009. It is seen that in the case of M/s. Apco Pharma Limited, the appellants opted for benefit of Notifications Nos. 50/2003 dated 10.06.2003. The dispute raised as to whether the assessee is liable to reverse the credit attributable to the inputs lying as such and inputs used in the goods under process as well as inputs contained in the finished goods, which are lying in stock. The Tribunal in the case of Apco Pharma Limited (supra) following the Larger Bench decision in the case of HMT and Ors. v. CCE, Panchkula reported in, 2008 (89) RLT 558 (CESTAT -LB) held that the credit has been taken validly and validly utilized and therefore, there is no question for reversal of the credit while opting the exemption notification. The relevant portion of the decision in the case of M/s. Apco Pharma Limited (supra) is reproduced below: