Per Lajja Ram :

This appeal has come before us in Larger Bench on a reference made by a Bench of Two Members in Order No. C-II/1118-1119/WZB/2000 dated 10.4.2000. The question refereed for our consideration is whether with regard to the same specified goods, the benefit of modvat credit and the benefit of full exemption under small scale exemption notification, could be availed of by an assessee simultaneously. With regard to different specified goods, there was already a decision dated 20.4.92 of the Tribunal in the case of Faridabad Tools Pvt. Ltd. Vs. CCE - 1993 (63) ELT 759 (Tribunal) holding that with regard to different specified goods, the benefit of modvat credit and the benefit of full exemption under small scale exemption Notification could be availed of simultaneously by an assessee but on different goods. This decision had been confirmed by the Hon'ble Supreme Court on 2.1.96 through dismissal of the Civil Appeal filed by the Revenue.

The referring Bench had noted the Five Member Larger Bench's decision dated 19.11.94 of the Tribunal in the case of Kamani Foods Vs. CCE, Patna - 1995 (75) ELT 202 (Tribunal), wherein it was held that in terms of Notification No. 175/86