MODI RUBBER LTD. AND ORS. Vs. CCE, MEERUT

JUDGEMENT

(1.) THE Commissioner in the impugned order observed

(2.) ARGUING the case of the appellant Shri V. Sridharan, Ld. Counsel submits that Rule 57A of the Central Excise Rules, 1944 provides for taking credit of specified duty paid on specified inputs for payment of specified duty and specified final products. Ld. Counsel submits that the Government of India issued a Notification No. 5/94 dt. 1.3.1994 which provided hereinafter referred to as 'specified duty' paid on inputs described in the corresponding entry in col. 2 of the said Table, shall be allowed as credit when used in or in relation to the manufacture of the said final products and the credit of duty so allowed shall be utilised for payment of duty leviable on the said final products. He submitted that Rule 57F(12) provided

(3.) SHRI Mewa Singh, Ld. DR appearing for the respondent Commissioner submits that Rule 57A provides for the final product to be specified, the input to be specified and the duty to be specified. He submits that in the instant case, there is no dispute about the final product and the input are specified. The only dispute is about the duty specified. He submits that in the instant case, Modvat credit was taken on tyre cord fabric. He submits that on tyre cord fabrics, Additional Excise Duty is leviable and credit thereof under the Modvat scheme is permissible. He submits that Notification No. 5/94 provides that credit of Additional Excise Duty can be availed only for payment of additional Excise Duty and not for payment of Basic Excise Duty. He submits that the Ld. Commissioner has very lucidly dealt with this point. He reiterated the findings of the Ld. Commissioner (Appeals).