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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, Dr. Chittaranjan Satapathy, JJ.
Indian Foods (P.) Ltd. -Appellant
Versus
Commissioner of Central Excise, Madurai -Respondent
Final Order No. 868/2010 Appeal No. E/381/2003, 868 of 2010, E/381 of 2003
Decided On : 10-08-2010
Indira Sisupal
Ms. Jyoti Balasundaram, Vice-President - The appellants herein received ATC flats supplied by Britannia Industries Ltd., Madras which were cleared by the manufacturer after paying an amount of 8% advalorem on the value in terms of Rule 57CC of the Central Excise Rules, 1944. The amount so reversed was taken as MODVAT credit by the assessees and this was objected to by the Department on the ground that the said amount cannot be equated with duty of excise for the purpose of availment of credit. The authorities below have relied upon the decision of the Tribunal in the case of Gas Authority of India Ltd. Vs. CCE, Mumbai - 2001 (135) ELT 795 to hold that the amount expunged under Rule 57CC of the Central Excise Rules, 1944 cannot be considered as excise duty and therefore credit cannot be availed thereof.
2. On hearing the learned DR and perusing the records (the assessees have asked for a decision on merits), we see no reason to interfere with the impugned order relying upon the Tribunal's decision cited supra, as no contrary view has been brought to our notice. The impugned order is, therefore, upheld and the appeal is rejected.
