Commissioner of Customs and Vs. Venus Taxtile Engineers

1. the respondents herein are manufacturers of textile machines and parts thereof falling under chapter heading 84 of the schedule to the central excise tariff act, 1985 and are availing modvat facility under rule 57a of the central excise rules, 1944. they started availing modvat facility from 9.3.93 and took modvat credit for their inputs namely electric motor received vide gp1 no. 20 dt. 9.3.93 and also availed modvat credit of rs. 3,135/- vide rg 23 part-ii & iii of the same date. as per notification no. 175/86 dt. 1.3.86 where a manufacturer avail of the credit of the duty paid on inputs used in the manufacture of the specified goods cleared for home consumption under rule 57a of the central excise rules, he is required to pay duty from the date on which he opts for the modvat scheme. the assistant collector confirmed the demand of rs. 17,016/-; the commissioner (appeals) dropped the proceedings holding that since the declarations was filed on 9.3.93 and the finished goods were cleared on the same day, it is unlikely that the inputs were received on the day on which the credit was availed could have been used in the finished product; hence this appeal.2. we have heard ld. sdr and perused the records. none appears for the respondents in spite of notice issued. the contention of the revenue is that it is not relevant whether the inputs used in the manufacture of the finished products cannot be verified, but what is relevant is that once modvat scheme opted for, duty is required to he paid particularly in the absence of any one to one co-relation between inputs and finished products. we see substance in the contention of the revenue having regard to the language of notification and also having regard to the admitted position that the respondents filed modvat credit on 9.3.93 and indeed availed modvat credit. we, therefore, uphold the submissions of the revenue set aside the impugned order and allow the appeal.