Vulcan Electro Controls Pvt. Ltd. Vs. Cce

Vulcan Electro Controls Pvt. Ltd. vs Cce

Type Court Judgment Court Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi Decided Sep 15, 2004

~2 min read

https://sooperkanoon.com/case/36515

For advocates & juniors · 7-day free trial

Brief this judgment before chambers

Stop skimming 50 pages - get an 18-section AI Brief on this case, ask scoped follow-ups, and find related precedents with Semantic Search. Full trial, no card required.

18-section brief - facts, issues, ratio, relief
Ask this case - answers cite the judgment
Semantic search - find precedents by meaning
Research drawer - sections, cites, related cases

Citation: sooperkanoon.com/36515
Court: Customs Excise and Service Tax Appellate Tribunal CESTAT Delhi
Judge: S Kang, Vice, A T V.K.
Decided On: Sep 15, 2004
Subject: Excise

Case Summary

AI-generated summary - not the official court judgment text.

Excise

Key legal issue: Excise

Parties & Advocates

Appellant / Petitioner

Vulcan Electro Controls Pvt. Ltd.

Respondent

Cce

Excerpt

1. the issue involved in this appeal, filed by m/s. vulcan electro control (p) ltd. is whether modvat credit of the duty paid on the inputs used in the manufacture of excisable goods exempted under notification no. 214/86-ce dated 1.3.1986 is available to them.2. we heard shri p m panwar, learned consultant, for the appellants and shri h c verma, learned dr for the respondent. the appellants manufacture a number of excisable goods which are removed by them on payment of duty. they also undertake job work from m/s. hi-tech gears ltd. who after carrying out certain other processes cleare those goods on payment of duty. the department has disallowed the modvat credit of the duty paid on inputs like rubricating and cutting oils on the ground that these inputs have been used in the manufacture of exempted goods.it has been contended by the appellants that the goods which are processed by them on job work basis and in respect of which these inputs are used are not exempted goods as the principal manufacturer i.e. hi-tech gears ltd. cleare these goods on payment of duty from their factory. the issue involved in this matter is no more-res-integra as it has been settled by the appellate tribunal in the case of jindal polymers v. cce, meerut-2001(135) elt 657 (tribunal) wherein the tribunal has held that the requirement of notification no. 214/86-ce is that the final product should be those on which duty of excise is leviable and the chain of credit has to be extended to the stage of clearance of the finished goods by the principal manufacturer on payment of duty. the appellate tribunal has relied upon the decision of the tribunal in the case of bajaj tempo v. cce-1994 (69) elt 122. this decision has also been followed by the tribunal in the case of shakti insulated wires ltd. v. cce & c, mumbai-iv-2002 (145) elt 668.following these decisions we set aside the impugned order and allow the appeal.

Full Judgment

1. The issue involved in this appeal, filed by M/s. Vulcan Electro Control (P) Ltd. is whether Modvat Credit of the duty paid on the inputs used in the manufacture of excisable goods exempted under Notification No. 214/86-CE dated 1.3.1986 is available to them.

2. We heard Shri P M Panwar, learned Consultant, for the Appellants and Shri H C Verma, learned DR for the Respondent. The Appellants manufacture a number of excisable goods which are removed by them on payment of duty. They also undertake job work from M/s. Hi-Tech Gears Ltd. who after carrying out certain other processes cleare those goods on payment of duty. The department has disallowed the Modvat Credit of the duty paid on inputs like rubricating and cutting oils on the ground that these inputs have been used in the manufacture of exempted goods.

It has been contended by the Appellants that the goods which are processed by them on job work basis and in respect of which these inputs are used are not exempted goods as the principal manufacturer i.e. Hi-Tech Gears Ltd. cleare these goods on payment of duty from their factory. The issue involved in this matter is no more-res-integra as it has been settled by the Appellate Tribunal in the case of Jindal Polymers v. CCE, Meerut-2001(135) ELT 657 (Tribunal) wherein the Tribunal has held that the requirement of Notification No. 214/86-CE is that the final product should be those on which duty of Excise is leviable and the chain of credit has to be extended to the stage of clearance of the finished goods by the principal manufacturer on payment of duty. The Appellate Tribunal has relied upon the decision of the Tribunal in the case of Bajaj Tempo v. CCE-1994 (69) ELT 122. This decision has also been followed by the Tribunal in the case of Shakti Insulated Wires Ltd. v. CCE & C, Mumbai-IV-2002 (145) ELT 668.

Following these decisions we set aside the impugned Order and allow the appeal.

Same Court & Year Customs Excise and Service Tax Appellate Tribunal CESTAT Delh... Same Parties Vulcan Electro Controls Pvt. Ltd. vs Cce Same Subject Excise Same Judge S Kang, Vice, A T V.K.