BHOR INDUSTRIES LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) Petitioner is partly aggrieved by the order dated 6-12-2000 [2001 (138) E.L.T. 224 (Tribunal)]. The learned Tribunal accepted the contention of the Petitioners that though the product (input) P.V.C. Film was exempted from payment of duty, if the Petitioner had paid duty they were entitled to take credit for the same.

(2.) The Petitioners purchased PVC resin falling under the Heading 39.04 in the market and availed of MODVAT credit for the same. From PVC resin the Petitioners manufacture PVC film/sheets falling under the Heading 39.20. The credit of duty paid on PVC resin is utilized for payment of duty on PVC film/sheet. The PVC film/sheet is cleared by the Petitioners on payment of appropriate duty of excise. The credit of duty paid on PVC film is taken on the credit as utilized for payment of duty on leather cloth. The Petitioners chose to pay duty on PVC film though the same was exempted by Notification No. 217/86-C.E., dated 2-4-2006.

(3.) A show cause notice was issued to the Petitioners demanding duty for the period from July to December, 1992 on the ground that the Petitioners ought to have availed exemption under Notification No. 217/86-C.E. for PVC film/sheet. Show cause notice demanded the duty paid by the Petitioners for PVC film/sheets and taken as credit and utilized for payment of duty on leather cloth. The show cause notice specifically mentioned as under :