=1= IN IN IN THE THE THE HIGH COURT OF JUDICATURE AT BOMBAY HIGH COURT OF JUDICATURE AT BOMBAY HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL ORIGINAL ORIGINAL CIVIL JURISDICTION CIVIL JURISDICTION CIVIL JURISDICTION CENTRAL CENTRAL CENTRAL EXCISE APPLICATION NO.8 OF 2001 EXCISE APPLICATION NO.8 OF 2001 EXCISE APPLICATION NO.8 OF 2001 The Commissioner of Central Excise, Mumbai V, Bandra (E), Mumbai 400 051 ...Applicant v/s M/s Mahindra and Mahindra Ltd., Kandivali (East), Mumbai 400 101 and others ...Respondents Mr R.V. Desai with Mr A.S. Rao and Mr K.R. Chaudhary for Applicant. Mr V. Sridharan with Mr Prakash S. i/b M/s PDS Legal for Respondents. CORAM CORAM CORAM : D.K. DESHMUKH AND J.P. DEVADHAR JJ. : D.K. DESHMUKH AND J.P. DEVADHAR JJ. : D.K. DESHMUKH AND J.P. DEVADHAR JJ. DATE DATE DATE : 7TH OCTOBER 2008 7TH OCTOBER 2008 7TH OCTOBER 2008 =2= P.C.- 1. This application was admitted on 10th March 2005 on the following question of law :- " Whether Modvat credit availed on inputs of I.C. Engines can be utilised for payment of duty on Motor Vehicles in manufacture of which such inputs have not been used in terms of 57F of Central Excise Rules 1944 as it existed prior to its amendment vide Notification No.11/95-CX dated 15.03.95 ?" 2. The assessee manufactures I.C. engines which are used in the manufacture of motor vehicles in their unit at Mumbai. Some of the I.C. engines manufactured by the assessee were cleared by the assessee to their unit at Nasik on payment of excise duty. As the excise duty paid on the inputs used in the manufacture of I.C. engines was higher than the excise duty payable on I.C. engines, there was surplus credit on account of I.C. engines cleared to Nasik unit on payment of excise duty. 3. The surplus credit was utilized by the assessee to discharge the excise duty payable on the =3= motor vehicles manufactured at their Mumbai unit. According to the Excise Authorities, the surplus credit relates to the I.C. engines cleared to the Nasik unit and does not relate to the I.C. engines utilized in the manufacture of motor vehicles at their Mumbai unit, there is violation of Rule 57F of the Central Excise Rules 1944 and therefore, the credit cannot be availed. The Tribunal allowed the claim of the assessee. It may be noted that the Circular No.33 dated 4th May 1994 issued by the Central Board of Excise and Customs inter alia states thus :- "(viii) There is no 1 : 1 correlation of the input and final product under the Modvat Scheme for utilisation of credit. The excess credit accumulated, if any, can be utilised towards payment of duty on final products produced in the same factory using the same inputs." 4. From the aforesaid Circular, it is clear that the decision of the Tribunal in allowing the assessee to utilize the surplus is in consonance with the said Circular. In this view of the matter, we see no reason to call for a statement of case. Accordingly, the Application is dismissed, rule is discharged with no order as to costs. =4= . Parties to act on the copy of this order duly authenticated by the Associate / Private Secretary of the Court. . Certified copy is expedited. ( D.K. DESHMUKH J.) ( J.P. DEVADHAR J.)