1994 (3) TMI 176 - AT - Central Excise

Summary

Issues:
1. Waiver of pre-deposit and stay of recovery of demands of duty.
2. Interpretation of Notifications No. 202/88, 33/92-C.E., and 53/92-C.E.
3. Allowance of MODVAT credit on duty paid ingots.

Analysis:

Issue 1: Waiver of pre-deposit and stay of recovery of demands of duty
The ld. Advocate requested waiver of pre-deposit and stay of recovery for various appellants citing a common issue. The Tribunal agreed and passed a common order for all applications, considering the identical matter involved.

Issue 2: Interpretation of Notifications No. 202/88, 33/92-C.E., and 53/92-C.E.
The dispute revolved around the interpretation of Notifications related to re-rollable material of iron and steel for manufacturing bars and rods without duty payment. The Revenue argued that duty paid ingots used before a specific date were not entitled to the benefit of the Notification. The ld. Advocate contended that the Government's intention was to allow the benefit even for ingots used in manufacturing bars and rods. The Tribunal held that duty liability for the period in question was correctly imposed but acknowledged the availability of MODVAT credit on duty paid ingots.

Issue 3: Allowance of MODVAT credit on duty paid ingots
The Tribunal recognized the availability of MODVAT credit for duty paid on ingots used in manufacturing bars and rods. It emphasized that the failure to file a declaration due to reliance on a different Notification should not deprive the appellants of the MODVAT credit. The matters were remanded to the adjudicating authority to verify the duty paid character of ingots and allow the MODVAT credit accordingly.

In conclusion, the Tribunal upheld the duty liability for the period in question but allowed the stay petitions unconditionally based on the availability of MODVAT credit. The matters were remanded for the verification and adjustment of the duty demanded against the MODVAT credit admissible to the appellants.