9911796707
TMI Blog1994 (1) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 91/90 dated 28-8-1990. In terms of that order, the Assistant Collector disallowed the Modvat credit taken by the appellants to the extent of Rs. 71,427.60. 2. The facts of the case are that the Superintendent of Central Excise, Range-I of Rishra Division, issued a show cause notice-cum-demand notice No. 9/88 dated 8-4-1988 to the appellants, stating that they had contravened the provisions of Rules 57A, 57G(2) and 57F(2) of the Central Excise Rules, 1944 and had taken and availed of Credit of duty under Modvat Scheme as Deemed Credit amounting to Rs. 71,427.60 against 19.841 M.T. of Zinc and Zinc articles, which was not admissible to them. 3. In the brief facts of the case which were annexed to the show cause notice, the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the deemed credit taken by the appellant Company on the above-said quantity of Zinc and Zinc articles is recoverable or not? 6. In this connection, it is seen that as far as 6.0078 M.T. of Zinc Alloy Ingots are concerned they were sold to the appellants by M/s. Century Aluminium Manufacturing Company Ltd. This metal was used for galvanisation process by the appellants. The Department made an enquiry with M/s. Century Aluminium Mfg. Co. Ltd. against which they had stated that these Zinc Alloy Ingots sold by them to the appellant Company were non-duty paid. These allegations were clearly mentioned in the show cause notice. It was also mentioned in the show cause notice about the enquiry made by the Department. In reply to the show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department by the appellants. The appellants also did not dispute in reply to the show cause notice that the enquiry made from M/s. Century Aluminium Mfg. Co. Ltd. did not reflect the correct state of affairs. It, therefore, clearly goes to show that the enquiry with M/s. Century Aluminium Mfg. Co. Ltd. reveals that these Zinc Alloy Ingots supplied by them to the appellants were non-duty paid. An allegation was made in the show cause notice that this enquiry proves that these aluminium ingots are clearly recognisable as non-duty paid. In that view of the matter, the credit taken by the appellants with respect to 6.0078 M.T. of Zinc Alloy Ingots purchased from M/s. Century Aluminium Mfg. Co. Ltd., is not in accordance with law. Therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order dated 5-12-1986 by the Government of India. Hence the order passed by the lower authorities for payment of above-said amount with respect to the quantity of 13.189 M.T. of Zinc, is not in accordance with law. In the result, the appeal is partially allowed by holding that Credit taken by the appellants with respect to 13.189 M.T. of Zinc purchased from M/s. Capso Engineers is legally allowable to them. The demand of duty in this regard is set aside. However, the credit of duty taken on Zinc Thimbles to the extent of 0.007 M.T. + 0.1382 M.T. as mentioned in the show cause notice is not allowable to the appellants which fact is not disputed by the appellants also. Hence the total demand of duty on this count as well on 6.0078 M.T. of Zi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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