- (1.) PETITIONER No. 1, is a Company within the meaning of Section 3 of the Companies Act, 1956. It carries on the business of manufacturing Cement at Beawar.
(2.) THE cement manufactured by it is subject to excise duty at the rate set forth in the Schedule of the Central Excise Tariff Act, 1985. The 'MODVAT' Scheme was introduced in the year 1986 under Central Excise Law, wherein manufacturers of finished excisable goods were allowed credit on any duty of excise or additional duty paid under Section 3 of the Customs Tariff Act, 1985, on the goods used in or in relation to the manufacturing of the said final product, referred to as 'inputs' which includes paint and packing material. This Scheme permitted utilisation of the credit so allowed towards the payment of the duty of excise leviable on the final product of such manufacturers.
(3.) RULE 57A permits the taking of credit of excise duty paid on 'inputs', by the manufacturer of such 'inputs' and its utilisation towards the payment of excise duty payable on the finished goods of manufacturers using such as 'inputs'.;