GRASIM INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) The appellant is a manufacturer of man made fabrics and was entitled to Modvat credit under Notification No. 29/96 -CE dated 3.9.1996 as amended from time to time. The present appeal is directed against disallowing of a credit of about 5.8 crores.

(2.) The dispute is about credit taken by the appellant in respect of goods in stock, in terms of para -7A of Notification No. 28/98 -CE(NT) dated 18.7.1998 which was an amendment to previous Notification No. 29/96 -CE dated 3.9.1996. The relevant provisions read as under:

(3.) We have perused the records and heard the Id. SDR also. We find merit in the appellant's contention. Para -7A of the amending Notification makes it clear that the proviso of that para relates to the goods lying in stock on 2.6.1998. Therefore, the Notification was required to be implemented in terms of stock on that date, though the Notification was issued on a much later date on 18.7.1998. Therefore, the Revenue's contention that the credit could be taken only at the time of removal of the goods cannot find acceptance. The credit would be available with reference to stock on the stipulated date, on 2.6.1998, and shall be utilised for payment of duty on the goods cleared on a later date. There is also merit in the contention that the condition of proviso to para 7A remains satisfied. While allowing them deemed credit under Notification No. 28/98, jurisdictional Superintendent had denied them credit already taken. The consequential reversal of the credit placed them in a position equivalent to that of not availing the credit. This position remains settled by the aforesaid decision of the Apex Court in the case of Chandrapur Magnet Wires (P) Ltd. (Supra).