The appellants are engaged in the manufacture of clocks and watches and parts thereof falling under Chapter 91 of Schedule to Central Excise Tariff Act, 1985. The modvat credit of Rs. 7169.52 was disallowed on the ground that the appellant took the credit on the basis of invoice issued by the unregistered dealer. The appellant filed the appeal and the appeal was dismissed.

2. Shri O.P. Sharma, ld. consultant appearing on behalf of the appellant submitted that the condition of registration was made mandatory under Notification No.32/94-NT dated 4.7.94. The condition of registration was waived till 31.12.94 vide Notification No. 64/94-NT dated 7.11.94. He submitted that appellant took credit prior to 31.12.94 in which period the condition of registration was waived. Hence the appellants are entitled for taking the benefit of modvat credit.

3. Shri Nanak Chand, ld. Dr. appearing on behalf of the department, reiterated the findings of the lower authorities.

4. The appellant took credit on the invoice issued by the unregistered dealer M/s Arora Sales Corpn. Notification No. 64/94-NT dated 7.11.94 read with circular No. 76/94 dated 8.11.94 issued by Central Board of Excise and Customs