CCE Vs. BAZPUR CO-OP. SUGAR FACTORY LTD.

JUDGEMENT

(1.) In this appeal, the issue relates to the availability of the Modvat Credit to the respondents of the disputed amount of Rs. 1,43,735. The modvat credit of this amount was availed by the respondents on an invoice issued by the job worker to whom the goods were sent earlier by them for conversion/repair purposes. The adjudicating authority disallowed the credit as the same could not be availed by the respondents under Rules 57 -Q and 57 -S. The Commissioner (Appeals) has reversed that Order -in -Original of the adjudicating authority by referring to the ratio of the law laid down in the case of Kerala State Electronics Corporation v. CCE, Kochin, 1996 (84) ELT 44 (T).

(2.) The learned JDR has reiterated the correctness of the Order -in -original and argued that the Commissioner (Appeals) had wrongly reversed that order as the credit could not be availed by the respondents under Rules 57 -Q and 57 -S.

(3.) On the other hand, the learned consultant has contended that the credit was available to the respondents under Rule 57 -Q(2) as well as 57 -S. In support of his contention, he has referred to the ratio of the law laid down in the case of Kerala State Electronics Corporation v. CCE, Kochin, supra, which has been relied upon by the Commissioner (Appeals) and another judgment of the Tribunal in the case of CCE, Meerut v. U.P. State Sugar Corporation Ltd., 2004 (167) ELT 45 (T).