COLLR OF C EX Vs. MYSORE POLYMERS AND RUBBER PRODUCTS P LTD

JUDGEMENT

(1.) THIS is an appeal filed by the Revenue against the order of the Collector of Central Excise (Appeals), Madras, dated 21-12-1988.

(2.) The learned Collector (Appeals) had allowed the appeal of the Respondents against the order of the original authority under which the original authority had disallowed the proforma credit in respect of the inputs which were contained in the cut tubes and tyres found defective on manufacture and cleared under Tariff Item 68 of the Central Excise Tariff. The learned Collector (Appeals), however, set aside the lower authority's order for the reasons recorded in his order and reproduced below for convenience of reference:

(3.) SHRI B.P. Achar, the learned representative of the appellant company, has stated that the Department itself in the context of Rule 57D(1) for the purpose of MOD-VAT credit, where there is a provision under Rule 57D(1) similar to that in the Explanation to sub-rule (2) of Rule 56-A, has held that the cut tyres and tubes are nothing but waste and scrap arising during the process of manufacture and hence eligible for the benefit of MODVAT credit in terms of Rule 57D(1). Rule 57D(1) for convenience of reference is reproduced below: