9911796707
TMI Blog1988 (6) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... missible or not. The department contends, as a common ground of appeal, that the said deemed credit taken by the respondents herein is not admissible because the M.S. sheets are wholly exempted from duty under Notification 208/83, dated 1.8.1983 (as amended) and therefore, such M.S. sheets on which deemed credit has been taken by the respondents are clearly recognisable as non-duty paid and hence in terms of proviso (ii) to para 2 of Government of India s aforesaid order dated 7-4-1986 would apply making the credit inadmissible. The respondent company, on the other hand, contends inter alia, that the Notification 208/83, dated 1.8.1983 (as amended) does not give unconditional exemption, inter alia, to M.S. sheets. Before the sheets can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 7.4.1986, according to the respondents, permitting deemed credit on M.S. sheets is unambiguous and it is for the department to prove by adducing sufficient evidence that the sheets purchased from the market are clearly recognisable as non-duty paid. The department s contention, according to the respondents that the onus to prove that the M.S. sheets are duty paid shifts on the assessee is not tenable. 3. In order to appreciate the foregoing controversy it is appropriate to set out the provisions of the relevant rules, Government of India s order and the Notification 208/83, dated 1-8-1983. 4. Rule 57-G lays down the procedure to be observed by a manufacturer for taking credit of duty paid on specified inputs and utilised for manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 177/86-C.E., dated 1.3.1986 may be deemed to have paid the specified duty at the rate of Rs. 500/-(Rupees Five Hundred only) per tonne and a credit of the specified duty in respect of such sheets used in the manufacture of the said final products on which the duty of excise is leviable either in whole or in part, may be allowed at the rate of Rs. 500/-per tonne without production of documents evidencing payment of duty. No such credit shall, however, be allowed, (i) if in respect of any inputs the credit of specified duty thereon has already been availed of under any rule or notification granting such credit; (ii) if such inputs are clearly recognisable as being non-duty paid or charged to nil rate of duty; or (iii) if in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods are clearly recognisable as non-duty paid and hence in terms of clause (ii) of the direction as set out above, no such credit can be taken by the respondents herein. I am unable to accept this plea of the appellant-Collector as rightly contended by the respondents learned consultant. M.S. sheets are exempted from the whole of the duty of excise in terms of the aforesaid Notification 208/83 only if the inputs (for sheets) falling under the same Chapter 72 have already paid duty or no credit of duty has already been taken on the inputs either under Rule 56A or under Rule 57A as the case may be. The department has failed to produce any evidence to the effect that the aforesaid conditions are satisfied in the case of M.S. sheets purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X
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