FLEX CHEMICALS LIMITED Vs. COMMR. OF C. EX.

JUDGEMENT

(1.) In this appeal, filed by M/s. Flex Chemicals Ltd., the issue involved is whether the entire duty of Excise paid on Residual Fuel Oil (RFO) used as inputs is available as Modvat Credit or the Credit is restricted to the amount of Excise duty calculated at the rate of 10% ad valorem.

(2.) Shri Kailash Chander, Representative of the Appellants, submitted that the Appellants manufacture Polyster Chips and avail of Modvat Credit in respect of inputs as well as capital goods; that the Asstt. Commissioner, Central Excise under Adjudication Order No. 51/99, dated 14 -4 -99 restricted availment of Modvat Credit on RFO @ 10% ad valorem as the RFO falls under the same category under which Light Diesel Oil, bitumen and paraffin falls and all these products including RFO are classifiable under Subheading 2713.30 of the Schedule to the Central Excise Tariff Act; that the Commissioner (Appeals) also under the impugned Order has restricted the availment of Credit holding that RFO is a generic name and irrespective of the names under which such goods, as classified under 2713.30, are received, they would continue to be RFO. The learned Representative submitted that the issue involved has been decided by the following two decisions of the Tribunal : -

(3.) Shri S.C. Pushkarna, learned D.R., reiterates the findings as contained in the impugned Order.