ARIJIT PASAYAT,J. - (1.) Heard Mr. Mohan Parasaran, learned Additional Solicitor General. There is no appearance on behalf of respondent (hereinafter referred to as the assessee).
(2.) Factual background in a nutshell is as follows :- The assessee was engaged in the manufacture of biscuits under the brand name of "Ramesh" on his own account and under the brand name of "Cadbury" on job work basis on behalf of M/s. Hindustan Cocoa Products, Bombay. Own products worth approximately Rs. 6.29 lakhs was cleared. In addition, there was clearance of goods worth Rs. 1,20,937/- availing the benefit of Notification 175/86, dated 1-3-1986. Simultaneously, assessee filed an application on 17-1-1990 for availing Modvat benefit in respect of Cadbury brand biscuits manufactured by it on job work basis.
(3.) A show cause notice was issued by the concerned authority for recovery of duty on goods bearing "Ramesh" brand. The Assistant Collector dropped the demand holding that an assessee can avail full exemption on products falling under one heading and avail Modvat credit on full duty on goods falling under different chapter heading. Being aggrieved by such adjudication the Department filed an appeal before the Collector (Appeals) who held that it was not permissible for an assessee to simultaneously opt for goods of one heading and Modvat facility in respect of another heading.;