ORDER
C.N.B. Nair, Member (T)
1. The appellants manufactured Castings. They took Modvat credit on the inputs received for that purpose. Part of the Castings produced is captively used and the remaining sold in the market. The captively consumed castings are exempt from duty. Issue has arisen as to what is the action required to be taken in respect of the credits taken on the inputs used in the production of captively consumed castings. The appellant was making payment at the rate of 8% of the value of the Castings in terms of Rule 57 CC. Under the impugned order, it has been ordered that since the Castings are used in the manufacture of PD Pumps, 8 % of the value of the PD Pumps should be the amount required to be reversed.
2. Even though the matter is posted today for consideration of the stay applications, after hearing both the parties, we find that this issue remains covered by the decision of this Tribunal in the case of Patel Field Marshal Industries v. Commissioner of Central Excise, Rajkot [2003 (158) E.L.T.483 (Tri-Mumbai)]. Therefore, we proceed with the appeal itself, after dispensing with the requirement for predeposit.
3. Payment at the rate of 8% under Rule 57 CC is in respect of the value of final product which is manufactured by using the input in question. In the present case, the final product is Casting and not the PD Pumps manufactured by using the Castings. Therefore, going by first principle itself, the demand is not sustainable. The issue also remains covered by the aforesaid decision of the Tribunal. In view of this, the appeals are allowed, with consequential relief, if any, to the appellant. Copy of the order to be given by “DASTI”.