BHOORATHRAM AND CO. Vs. C.C.E.

JUDGEMENT

(1.) HEARD both sides and perused record.

(2.) THE facts of the case are that the appellant was a manufacturer of Prestressed Cement Concrete Pipes which are liable to Central Excise duty. The appellant was availing itself of Modvat credit on inputs used in such manufacture. Input credit so taken was utilised for payment of duty on these pipes.

(3.) WHEN there was no credit balance in the appellant's modvat account (the entire credit having been utilized for payment of duty) on 3.10.2002, the pipes in question came to be exempted from central excise duty. The Central Excise authorities found that part of the inputs on which credit had already been availed was lying unutilized in the appellant's factory on the date of exemption. It was also found that some of the inputs were also in the manufactured goods lying in stock, and in the final products under manufacture. Based on this, demand was raised under Rule 12 of Cenvat Credit Rules, 2002 seeking to recover the Cenvat credit (Rs. 7,34,458/ -) attributable to aforesaid inputs in stock.