CCE Vs. SHASUN DRUGS & CHEMICALS LTD.

JUDGEMENT

(1.) ALL these four appeals filed by the Revenue arise out of a common Order -in -Appeal No. 1 to 4/99 (TRY) dated 5.1.99 passed by the Commissioner of Customs and Central Excise (Appeals), Trichy by which the Commissioner (Appeals) has disallowed benefit of Modvat Credit on certain items and allowed the same on certain items. The Respondents are not in cross appeal against the items on which Modvat Credit has been disallowed. However, the department has come in appeal on those items where the Commissioner (Appeals) has allowed Modvat on the ground that they are not used in or in relation to the manufacture of the final product. Since a common question of facts and law are involved in all these appeals, they are taken up together for disposal as per law.

(2.) IN appeal Nos. E/722 to E/724, the name of the respondent was shown as M/s Shasun Drugs Limited, Pondicherry and in Appeal No. E/725 as M/s Shasun Chemicals and Drugs, Cuddalore. Shri K. Sankararaman, learned Counsel for the respondents has produced a copy of the Registration Certificate changing the name of the Company as Shasun Chemicals and Drugs Ltd, as per the minutes of the Board Meeting held on 18.9.95. He also submitted that the Pondicherry unit of the Respondents was having a separate and independent status till 18.9.95 and was merged with the main unit Shasun Chemicals and Drugs Ltd. vide resolution dated 18.9.95. He, therefore, sought for taking on record the change in name of the assessee -Respondents.

(3.) SHRI C. Mani, learned DR for the Revenue has submitted a common ground on which the Department has come in appeal that all those capital goods on which the benefit of Modvat Credit has been allowed by the Commissioner (Appeals), are not used directly in or in relation to the manufacture of the final product and hence Modvat Credit has been wrongly allowed by the Commissioner (Appeals) in all those items. So far as the item Isoprophyl Hydrochloride is concerned, the assessee has not filed any proper declaration under Rule 57G of the CE Rules, 1944 within six months from the date of receipt of the input. Therefore, allowing Modvat Credit on this item was not correct. Therefore, he submitted that order of the Commissioner (Appeals) allowing Modvat Credit on all those items may be set aside and the appeals filed by the Revenue may be allowed.