9911796707
TMI Blog1989 (7) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... claration for availment of MODVAT in respect of various inputs. The declaration was filed on 15-3-1986. Subsequently in their letter dated 22-5-1986 they also intimated about the bringing in steel scrap purchased from the market on which they would be availing of deemed credit as per the Ministry s order, allowing deemed credit on market scrap. However, during the months of September and October, 1987, they received steel scrap directly from the manufacturers under gate passes evidencing payment of duty at Rs. 365/- per M.T. and on the strength of these gate passes MODVAT credit was availed of in respect of actual duty paid on steel scrap. The Supdt. issued a notice disallowing the credit of duty involved on these four gate passes totalling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so contended that the demand has been issued under Rule 571 by the Supdt., whereas it should have been issued by the Assistant Collector. He also contended that the demand is time barred, in respect of the credit taken during the month of September 1987, since the show cause notice was issued only on 31-3-1988. He, therefore, pleaded that the order of the authorities below is not at all justified, since they have clearly intimated the input, namely steel scrap, which was to be brought by them under the MODVAT scheme. 5. Shri C.P. Arya, the learned SDR, contended that neither the proforma of declaration mentions the steel scrap as one of the inputs nor even the letter dated 22-5-1986 shows that steel scrap would be brought under gate parse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early indicate the name of the input and the finished product for enabling the department to examine whether the input and finished products are covered by MODVAT scheme and whether it is admissible. Though the letter is with reference to availment of deemed credit, it clearly gives particulars of the input, namely steel waste and scrap and also the finished product in which it is going to be utilised. We would therefore be justified in taking a more liberal view and deem it proper to treat the letter dated 22-5-1986 as a declaration for the purpose of Rule 57G. It is not the case of the department that steel waste and scrap is not a permissible input for use in the specified finished product as given in their letter dated 22-5-1986. Nor it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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