9911796707
TMI Blog1992 (6) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... ken Deemed Modvat Credit amounting to Rs. 88,682/- in respect of aluminium scrap of cables, wires and pulgaon scrap in terms of the statutory order of the Ministry of Finance bearing No. 342/1/88/TRU dated 1-6-1989. It was alleged that the deemed credit on aluminium scrap is available only in respect of aluminium scrap falling under Chapter Heading 76.02. The description shown in the delivery memo and invoice indicate that they are scrap of wire and cables and pulgaon scrap, the last item appeared to be scrap from ammunition depot clearly recognisable as non-duty paid, as it is exempted. Hence a Show Cause Notice was issued for denying the deemed credit taken as above in respect of the market purchase of aluminium scrap by the Respondents a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o establish that the inputs have been received duly exempted after fulfilling the condition of the notification and hence the deemed credit cannot be denied, in the case of a conditional notification. In view of this, the Collector (Appeals) has set aside the order of the Assistant Collector, against which the Revenue have come in appeal before the Tribunal. 3. Ms. Lipika Majumdar Roy Choudhury, the Ld. SDR, pleaded that in the case of pulgaon scrap they are ammunition scrap and must have been received from the Ordnance Depot and the goods manufactured in the Ordnance Factory are exempted. However, when it was pointed out to her that the Assistant Collector has only considered the Exemption Notification 182/84 and the Collector (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and there are also other judgments of the Tribunal in the case of Collector of Central Excise v. M/s. Mittal Metal Ltd. - 1991 (54) E.L.T. 290 and even in the case of M/s. Rapsari Engg. Industries - 1989 (43) E.L.T. 577 relied upon by the Assistant Collector, it is made clear that where the notification is unconditional, inputs could be construed to be wholly exempted and recognisable as such, but where the notification is conditional, it is necessary to establish that the inputs are received from a factory availing of exemption by fulfilling the condition. In the case of ammunition scrap, they have also been purchased from the market under invoices. Even in the case of aluminium wire scrap, they have been received under invoices on purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If it is sought to be held otherwise by the Department, it is necessary for them to establish that they are charged to nil rate of duty or have been cleared without payment of duty or coming from the manufacturers, who are exempted. Here undisputedly no such evidences are forthcoming. In the case of pulgaon scrap even though an allegation is made in the Show Cause Notice no findings have been given by the Assistant Collector, while confirming the demand. Hence the Collector (Appeals) had no occasion to go into this aspect. In view of this, we are unable to find fault with the order of the Collector (Appeals). The only question before him was whether the inputs could be construed to be wholly exempted by virtue of Notification No. 182/84 da ..... X X X X Extracts X X X X X X X X Extracts X X X X
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