9911796707
TMI Blog2010 (3) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... revity "the assessee") was engaged in the manufacture of iron, non-alloy and alloy steel ingots. The assessee adopted the compounded levy scheme on non alloy steel ingots with effect from 1.8.1997 by paying duty at the rate of Rs.5 lacs per month as full and final payment. According to the revenue, during the scrutiny, it revealed that the assessee had availed the modvat credit in excess as per notification dated 1.8.1997 and availed the same under modvat scheme as well. Consequently, a show cause notice was issued on the premises that the assessee having opted to work under the compounded levy scheme on non alloy steel ingots cannot utilize the input stage credit for discharging duty liability on alloy steel ingots. 2. In the wake of show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ESTAT is correct in holding that the respondent could pay the duty from the Modvat account on the stocks manufactured prior to opting for compounded levy scheme and cleared subsequently, when they were working under the compounded levy scheme, and when during the compounded levy period they were not entitled to avail Modvat credit on the inputs in terms of notification No.34/97-CE(NT) dated 1.8.1997? ii) Whether any Modvat credit balance lying with the respondent as on 1.8.1997 and earned on inputs used in manufacture of alloy steel ingots or non alloy steel ingots stood lapsed in terms of Rule 57F(17)(c) of Central Excise Rules, 1944, and could not be utilized for payment of duty on any excisable goods? 10. Assailing the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d levy scheme is only applicable to production of hot re-rolled products of non alloy steel ingots and not otherwise. There is no specific provision authorizing the authority to demand back credit of duty in respect of inputs lying in stock or contained in the finished product lying in stock on specified date. Thus, it would be seen that even as per Rule 57 F (17)(c) and (d), the un-utilized credit would lapse, which was balance as on 1.8.1997 in respect of only those goods, on which the compounded levy scheme was made applicable, i.e. non alloy steel and not on alloy steel ingots. 14. Again, it is not a matter of dispute that the assessee has utilized the credit of the duty paid on inputs, which were specifically utilized by the manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
