COLLECTOR OF CENTRAL EXCISE Vs. UNIQUE CHEMICALS

JUDGEMENT

(1.) At the instance of the Collector of Central Excise, Baroda, The Customs, Excise & Gold (Control) Appellate Tribunal, Bench -C has referred to the following questions of law for the opinion of this Court.

(2.) The brief facts giving rise to the present reference are that, M/s. Unique Chemicals, a Division of M/s. J.B. Chemicals and Pharmaceuticals, Ankaleshwar was engaged in the manufacture of Glyoxal 40%, part of which was transferred under Chapter X procedure to Belapur, which was then used within the factory at Belapur in the manufacture of Metronidazole attracting duty at the rate of 5% basic excise plus 5% special excise duty, so that modvat credit was not required to be reversed for the inputs used in the manufacture of Glyoxal 40%. On claiming exemption by the Company ' M/s. Unique Chemicals, the Assistant Collector found that when any goods are transferred under Chapter X procedure, modvat credit has to be reversed, as no duty is payable.

(3.) Being aggrieved by the order of the Collector of Customs and Central Excise (Appeals), the Collector Central Excise, Rajkot filed an Appeal before the Customs, Excise and Gold (Control) Tribunal Bench at New Delhi and the Tribunal concurred with the view taken by the Collector of Customs and Central Excise (Appeals) and dismissed the Appeal filed by the Collector of Central Excise.