Per G.R. Sharma :

In this case the Ld. Commissioner (Appeals) had observed that the clearance of goods under bond at Nil rate of duty in terms of Notification No. 49/94-CE (NT) dt. 22.9.94 issued under Rule 13 of the Central Excise Rules was treatable as clearance of goods without payment of duty; that the provision of Rule 57C are, therefore, attracted. He, therefore, rejected the appeal of the assessee. Being aggrieved by this order the assessee has filed the two captioned appeals.

2. The facts of the case in brief are that the appellants took credit of duty paid on inputs under Rule 57A. These inputs are used in the manufacture of final product namely D-Alpha Phenyl Glycine Chloride Hydrochloride which they cleared from their factory without payment of duty on Bond in terms of Notification No. 49/94-CE (NT) dt. 22.9.94 issued under Rule 13 of the Central Excise Rules. The contention of the Department was that the assessee cleared the goods from their factory under invoices at 'Nil' rate of duty by following the procedure laid down in Chapter X of the Central Excise Rules; that the assessee had not reversed the Modvat credit of duty in respect of the inputs contained in the sa