UNION OF INDIA Vs. FLEX CHEMICALS LTD

JUDGEMENT

(1.) This appeal is filed by the Union of India through Commissioner, Central Excise & Customs, Indore being aggrieved by the order dated 5-4-2004 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi in Case No. E/A No. 833/04-NB(C).

(2.) Brief facts of the case are that the respondent No. 1 is a company registered under the Companies Act and is having its factory at Malanpur. The respondent No. 1 is engaged in the manufacture of PET Chips etc., which are falling under Chapter Heading No. 3907 of the First Schedule to the Central Excise Tariff Act, 1985. The respondent No. 1 was availing Modvat credit facility under Rule 57A of the Central Excise Rules, 1944 on various inputs including inputs as fuel used in or in relation to the manufacture of final products.

(3.) Two show cause notices were issued to respondent No. 1 dated 16-3-1999 and 3-8-1999 by the Deputy Commissioner of Central Excise Division, Gwalior, wherein it was alleged that the respondent No. 1 was also manufacturing the said chips for their sister concern M/s. Flex Industries Ltd., Noida on job work under the provisions of Notification No. 214/86-C.E. dated 25-3-1986 and Sub-Rule 4 of the Rule 57F of the Central Excise Rules, 1944 (for short "the Rules, 1944").