COLLECTOR OF CENTRAL EXCISE Vs. PARKASHITA PERFORATORS

JUDGEMENT

(1.) THIS is a Reference Application filed by Commissioner of Central Excise, New Delhi for referring the following question of law to the Hon'ble High Court of Delhi.

(2.) SHRI T.A. Arunachalam, ld. JDR submitted that the Respondents filed classification lists effective from 1 -4 -1993 and opted for payment of normal rate of duty after availing of Modvat credit under Rule 57A of the Central Excise Rules; that this was disallowed to them by the Assistant Commissioner on the ground that the goods manufactured by them were exempted up to the limit of Rs. 30 lakhs under Notification No. 1/93, dated 28 -2 -1993; that the Tribunal has allowed them the benefit of Modvat credit relying on the decisions in the case of Garg Industries v. C.C.E. - 1996 (86) E.L.T. 495 (Tribunal) and Everest Converters v. C.C.E., Calcutta - 1995 (80) E.L.T. 91 (Tribunal). The Ld. D.R. further submitted that the legal point involved in the present matter is whether the assessee has option to pay the duty where the goods are exempted from payment of duty. He also mentioned that the Appellate Tribunal vide Reference order No.R/20/97 -NB, dated 8 -4 -1997 1997 (96) E.L.T. 604 (Tribunal) in the case of C.C.E., New Delhi v. Mahesh Metal Industries has referred the question of law to the Hon'ble High Court of Delhi for consideration.

(3.) THE Respondents under their letter received, on 28 -1 -2000, have submitted that it has been decided in different cases that it is the option of the assessee to avail the benefit of any of the notification that may be beneficial to him and requested that the Tribunal may pass such order as may be in the major interest of public.