COMMISSIONER OF CENTRAL EXCISE Vs. MANOJ ENTERPRISES

JUDGEMENT

(1.) The Revenue has impugned the order (Annexure P-3) passed by the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi (for short 'the Tribunal') dated 18-9-2002, vide which the order passed by the Commissioner (Appeals) was upheld and the respondent No. 1 was held entitled to claim modvat credit on the inputs as per certificate issued by Central Excise Range Officer.

(2.) The Department claims the following question of law arise for consideration by this Court:

(3.) A perusal of the facts in the present case shows that the respondent-assessee had taken modvat credit on the inputs used by him. He was allowed to take the credit. However, the case of the Department was that since the assessee has only partly discharged his duty liability, therefore, unless and until he deposits the entire duty, he is not liable to claim modvat credit. As the respondent-assessee had already received the modvat credit, therefore, the Department intended to deny the credit and to recover the credit already taken by the manufacturer.