CCE Vs. MODI SALES

JUDGEMENT

(1.) HEARD both sides. The learned Single Bench referred the following question to the Division Bench, whether the Cenvat credit to job worker is available on fuel which is used in the manufacture of dutiable as well as goods cleared to manufacturer to principal manufacturer under exemption notification No. 214/86 dated 25/03/86.

(2.) WE find that this issue is now settled by Hon'ble Madhya Pradesh High Court in the case of Union of India v. Flex Chemicals Ltd. reported in 2007 (216) E.L.T. 359 (M.P.). The Hon'ble High Court held as under: