9911796707
TMI Blog1993 (4) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... ling of exemption under Notification No. 178/88. An allegation was made in the show cause notice dated 6-9-1991 to the effect that the scrap is converted into billets and since no duty is paid on billets, in terms of the same notification, the final products bars and rods made out of the exempted billets are not entitled for exemption. There is also an allegation to the effect that during the material period, there was provisional assessment. However, Shri Attar pleaded that the Collector (Appeals) initially accepted their appeal on the ground of time bar and remanded the case back with the direction to place the papers before the Collector who however, held that during the material period, the assessment was provisional and directed the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchased from the market are recognised as input which is specified in the exemption notification. If that is used and no modvat/proforma credit is taken in respect of the duty involved on this input and copper bars/rods are manufactured therefrom, exemption in respect of such bars/rods is available in terms of the notification; (ii) The Chapter relating to copper is covered by the Modvat Scheme. Hence, duty paid on copper in one form, if used as an input, in the conversion into another form, modvat credit is available; (iii) As per the said exemption notification, even billets manufactured out of such copper scrap are exempted; (iv) Bars and rods cannot be manufactured from copper scrap directly without first converting it in the form ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing a view that billets only are the inputs in this case and since they are exempted, the notification is not available for bars rods. If we are prima facie to be persuaded to take such a view, as pleaded by the ld. SDK, then the object of the notification extending exemption to bars/rods manufactured out of duty paid copper scrap is frustrated and such a view is not permissible at this stage, especially when the entire chapter relating to copper is covered by modvat scheme averting multiple taxation of inputs at each stage of conversion. Hence prima facie grounds appear to be strong in favour of the applicants. We have also taken a similar prima facie view in the case of the same applicants earlier. Accordingly, we direct the applicants ..... X X X X Extracts X X X X X X X X Extracts X X X X
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