Order

These Appeals are against the Judgment of the Customs, Excise and Gold (Control) Appellate Tribunal (in short “CEGAT”), New Delhi, dated 29th September, 1999.

2. Briefly stated the facts are that the Respondent manufactures, out of Polyethylene Granules, Lay Flat Tubes as well as Protective Covers/Tarpaulins.

3. Some of the Lay Flat Tubings are sold as a final product. Some are used as an input for manufacture of protective cover/tarpaulins. Even in cases where the Lay Flat Tubing is used as an input for protective cover/tarpaulins, the Respondent follows different excise procedures for sales of protective covers/tarpaulins to two different parties. In respect of sales to Punjab State Civil Supplies Corporation Limited, the Appellant take benefit of Notification No. 217/86-C.E., dated 2nd April, 1986 by paying excise duty on the Lay Flat tubings at the rate of 20% ad valorem and then claims exemption on the protective covers/tarpaulins. In respect of the other customer viz., M/s. Indian Petro Chemicals Corporation Limited the Respon­dent claims Modvat credit in respect of duty paid on Polyethylene Granules for the manufacture of Lay Flat Tubes. As they claim Modvat credit the Re