Central Excise - Provision for deemed credit in respect of iron and steel, copper, aluminium, zinc and lead - Regarding - Central Excise - B. 22/30/86-TRU

Central Excise - Provision for deemed credit in respect of iron and steel, copper, aluminium, zinc and lead - Regarding F. No. B. 22/30/86-TRU Dated 29-9-1986 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Provision for deemed credit in respect of iron and steel, copper, aluminium, zinc and lead - Regarding. In terms of Order F. No. B.22/30/86-TRU, dated 7-4-1986 deemed credit was provided in respect of iron and steel, copper, aluminium, zinc and lead. The order inter alia provided for deemed credit in respect of wastes and scraps of iron and steel. This order was subsequently modified vide order of even No. dated 29-8-1986, by which the provision for deemed credit in respect of wastes and scraps of iron and steel was omitted. Doubts have been raised by some Collectors regarding availability of deemed credit in respect of wastes and scraps of iron and steel like bazaar scrap for the periods prior to 29-8-1986. It is clarified that even prior to 29-8-1986, in terms of the order dated 7-4-1986 no deemed credit was available in respect of inputs that were clearly recognisable as being non-duty-paid or charged to nil rate of duty. Therefore, scraps of iron and steel which were clearly recognisable as being non-duty paid or charged to nil rate of duty were not entitled to deemed credit. The amending order of 29-8-1986 was issued to deal with the problem of many manufacturers claiming deemed credit even in respect of scraps like bazaar scraps.