COMMISSIONER OF CENTRAL EXCISE Vs. MAMTA AND CO

JUDGEMENT

(1.) This appeal has been preferred by the revenue under Section 35G of the Central Excise Act, 1944 (for short, "the Act") against the order of the Customs, Excise & Service Tax Appellate Tribunal, New Delhi dated 19.10.2009, proposing to raise following substantial questions of law:

(2.) The Respondent-Assessee is a manufacturer of stainless steel circles which are either cleared on payment of duty or used in manufacture of utensils. The Assessee claimed benefit of notification No. 67/95-CE dated 16.3.1995 for captive use of raw material in manufacture of stainless steel circles on the ground that final product was exempt from duty. Vide order dated 26.4.2002, duty demand was raised against the Assessee which was upheld in appeal vide order dated 19.9.2003 with the modification that duty liability was to be adjusted against modvat reversal in accordance with the judgment of the Tribunal in the case of Jagatsons Inds , 2002(141) ELT 803 (Tri). On further appeal, the matter was remanded and on re-adjudication, demand was confirmed but the duty paid under Rule 57CC of the Central Excise Rules, 1944 was directed to be adjusted. On appeal before the Commissioner, the Commissioner upheld the adjustment in favour of the assessee with the following Observations:

(3.) The above view has been upheld by the Tribunal as under: