PerS.L. Peeran:

This appeal is directed against the order-in-original dt. 17.6.93 passed by the Collector of Central Excise, Pune.

2. In this order, the ld. Collector has drawn the following issues for his determination:

i. whether conditions of the Notification No. 53/88-CE dt. 1.3.88 as amended, are fulfilled;

ii. whether MODVAT Credit availed, on the duty paid VAM can be treated as duty paid or otherwise;

iii. whether company has an option to pay duty on their own in case the goods are fully exempted from payment of duty.

The ld. Collector has noted that the assessee had been availing duty concession under Notification No. 53/88-CE dt. 1st March'88 as amended, for their product 'Polynol' i.e. Polyvinyl Alcohol and using VAM, the raw material, captively for the same. In view of this fact, the assessees are not required to pay any duty on VAM. Moreover, they were entitled for duty exemption under Notification No. 217/86-CE dt. 2.4.86, they have preferred to forgo the exemption for captive consumption on VAM available under Notification No. 217/86-CE dt. 2.4.86 and to pay the duty, it has been further noted that the assessees were well aware of this fact, which can be seen from p