ORDER
C.N.B. Nair, Member (T)
1. The issue involved in this case is the eligibility for Modvat credit on exempted goods which have suffered duty.
2. Learned Departmental Representative, Shri D.K. Nayyar admits that even though the goods had been exempted, duty had been paid on them.
3. Shri J.P. Kaushik, learned Counsel for the respondents submits that duty paid on exempted goods can be claimed as Modvat credit. He refers to the decision of the Tribunal in Eveready Industries (India) Limited v. C.C.E., Allahabad reported in 1998 (28) RLT 659 (CEGAT) ‘in support of his submission.
4. I have perused the records of the case and considered the submissions made. I find that the Tribunal has held in the case of Eveready Industries (India) Limited that Rule 57A envisages giving of Modvat credit of duty paid on inputs received and that Central Excise Authorities cannot disallow duty paid on inputs as Modvat credit on the ground that such duty was not payable. Thus, the issue involved in the present appeal remains covered against the Revenue. Appeal fails and is dismissed.