- (1.) The point involved in the present case is as to whether the facilities in the factory of the assessee-respondent for carrying out bleaching, dying, printed and mercerising of textile fabrics would invite levy of excise duty at each stage of manufacture.
(2.) The Tribunal by its impugned order has accepted the appeal of the assessee and set aside the orders of the Commissioner(Appeals) and Assistant Commissioner levying excise duty at each stage relying upon its own judgment in the case of Indian Rayon and Industries Ltd. v. CCE, Calcutta,2000 37 RLT 154 (CEGAT). In Indian Rayon and Industries Ltd.(supra), the Tribunal had relied upon a judgment of this Court in the case of Umpire Industries Ltd. v. UOI,and held that the assessee would be entitled to modvat credit if duty is paid at each stage of the manufacturing and, therefore, the entire exercise would be revenue neutral.
(3.) Admittedly, against the decision of the Tribunal in Indian Rayon and Industries Ltd.(supra), revenue did not file any appeal and accepted the decision and in our view rightly so. Admittedly, assessee has paid duty at the final stage. If assessee has to pay the excise duty at each and every stage of manufacturing, it would be entitled to modvat credit and the whole exercise would be revenue neutral.;