ORDER
S. Kalyanam, Member (J)
1. This appeal is directed against the order of the Collector of Central Excise (Appeals), Madras, dated 31-10-1988 confirming the order of the Assistant Collector of Central Excise, Madras-17, dated 7-4-1988 holding that the duty paid inputs received by the appellant but not utilised in the manufacture of end-product but cleared as inputs on payment of duty under Rule 57F(l)(ii) of the Central Excise Rules, 1944 is also includible in the total clearance for considering the appellant’s eligibility to the benefit of Notification 175/86.
2. Shri Jagadeesan, the learned counsel for the appellant, at the outset submitted that this identical issue came up for consideration before the Central Board of Excise & Customs and the Board in their letter F. No. 263/30/88-CX. 8, dated 27-10-1988 clarified that the value of duty paid inputs not utilised in the end-product and cleared on payment of duty under Rule 57F(l)(ii) should not be included in the aggregate value of clearances under the Small Scale Exemption Notification. The learned counsel further submitted that similar view in favour of the assessee has been taken by the Department for the subsequent period.
3. Heard Shri Subramanian, the learned DR.
4. The issue set out above has been clarified by the Board in the aforesaid letter as under :
“The matter has been examined by the Board. Since inputs brought by the assessee for taking Modvat Credit have been purchased and not actually manufactured by the assessee, the same when cleared as such on payment of duty cannot be regarded as goods manufactured by the assessee. It has therefore been decided that the value of such inputs cleared as such under Rule 57F(l)(ii) should not be included in the aggregate value of clearances under the Small Scale Exemption Notification.”
Since this clarification of the Board was not before the adjudicating authority when the impugned order was passed, we think it proper to remand the matter by setting aside the impugned order for consideration of the issue in the light of the Board’s clarification extracted above and in accordance with law and we order accordingly.