Stay Order No. S/689/98-NB arising from in E/Stay/2266/98-NB and in Appeal No. E/2280/98-NB. Case: Eicher Tractor Vs Commissioner of Central Excise, New Delhi. Central Information Commission

Case NumberStay Order No. S/689/98-NB arising from in E/Stay/2266/98-NB and in Appeal No. E/2280/98-NB
CounselFor Appellant: Shri S. Madhavan, CA and For Respondents: Shri D.K. Nayyar, JDR.
JudgesShri P.C. Jain, Member (T) and S.S. Kang, Member (J)
IssueCentral Excise Act, 1944 - Section 35F
Judgement DateNovember 09, 1998
CourtCentral Information Commission


P.C. Jain, Member (T), (Northern Bench At New Delhi)

  1. Learned Chartered Accountant, Shri S. Madhavan prays for waiver of pre-deposit and stay of recovery of Rs. 18,37,104/- sought to be denied as Modvat credit taken by the applicants on inputs which are admittedly used exclusively in a final product, namely, tractors which are exempted from payment of duty.

  2. Learned Chartered Accountant points out that the Scheme of Rules 57C and 57CC does not call for this retrenchment of credit, as proposed by the lower authorities. The scheme envisages payment of duty on the goods which were otherwise exempted if inputs are used in manufacture of both dutiable and exempted final products. This they have done in terms of provisions of Rule 57CC(1). Therefore, there is no question of retrenchment of credit on inputs used exclusively in exempted tractors. On the other hand, Revenue''s contention is that 57C(1) gives the authority for...

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