CCE Vs. LOYAL SUPER FABRICS

JUDGEMENT

(1.) The issue in dispute in the present appeals namely as to whether goods cleared under bond without payment of duty in terms of Notification No. 49/94 -CE dated 22.9.1994 issued under Rule 13 of the Central Excise Rules, 1944 are exempted from duty or goods chargeable to nil rate of duty so as to be disentitled to the benefit of MODVAT credit stands settled against the Revenue by the Punjab & Haryana High Court decision in Commissioner v. Alpha Drugs (India) Ltd. : 2002 (140) ELT 43 (P&H) upholding the Tribunal's order relied upon by the Commissioner (Appeals) in the present impugned orders.

(2.) Following the ratio of the High Court decision we uphold the impugned orders extending the benefit of MODVAT credit and reject the appeals.