Per Justice K.K. Usha:

The appeal at the instance of the assessee is directed against Order in Appeal No. 1230 (KDT) CE/JPR-I/2000 dated 8.11.2000 passed by the Commissioner (Appeals), Customs Central Excise, Jaipur.

2. The dispute relates to eligibility of the appellant to utilise the modvat credit taken on Glass Shell and Electron Gun utilised for the manufacture of 14" picture tubes for discharging the duty on 17" and 20" picture tubes.

3. The appellants are engaged in the manufacture of BW TV picture tubes of screen sizes 14", 17" and 20". The demand of excise duty which is relevant for this appeal is for a period from 1.3.1994 to 15.3.1995. The effective rate of duty from 1.3.94 was at the rate of 10% ad valorem for 14" size picture tube and Rs. 300/- per picture tube for 17" and 20" picture tubes. Ever since introduction of Modvat Scheme the appellants have filed modvat declaration under Rule 57G (2) declaring picture tubes of Heading 8540.12 as the final product. Size-wise declaration of final product was never made. All inputs covered by various Chapters were shown as inputs against the final product BW TV picture tubes under sub-heading 8540.12.

4. The appellants hav