9911796707
TMI Blog1994 (7) TMI 191X X X X Extracts X X X X X X X X Extracts X X X X ..... nation is whether in respect of ship breaking material the modvat credit is restricted to Rs. 500/- per MT or more. In terms of Notification No. 177/86-C.E. dated 1-3-1986 as amended the modvat credit on goods obtained from breaking up of ship, boats and other floating structure is restricted to Rs. 5000/- per MT or the actual duty paid whichever is less. Heading No. 72.30 and 73.27 of the Central Excise Tariff Act, 1985 (5 of 1986) covers the goods and material obtained by breaking up of ships, boats and other floating structures. I find the party was entitled to take credit of Rs. 500/- per MT or actual duty paid whichever is less. But in the instant case the party has taken credit for the entire amount i.e. BED and SED even exceeding Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under Notification No. 177/86-C.E., dated 1-3-1986 as amended. As the said Notification was purported to cover the inputs obtained by the appellant. As the appellant could not satisfactorily explain the excess modvat credit taken, therefore a show cause notice was issued to the appellant as to why the excess amount of Modvat credit availed by them during the period 26-6-1990 to 30-10-1990 should not be recovered from them under Rule 57-I and why a penalty should not be imposed on them. 3. Appearing for the appellant, Shri P.S. Bedi, the ld. Consultant submitted that the Adjudicating Authority had not rebutted all the pleas submitted by them; that the Modvat credit of duty was taken on the basis of Gate Passes; that as per proviso (3) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) of Notification No. 177/86 dated 1-3-1986. Proviso (3) of the Notification is reproduced below for the sake of convenience :- (3) The credit of specified duty paid in respect of inputs, namely, the goods falling under 72.15 and 73.09 and obtained from breaking up of such ships, boats and other floating structures, as are manufactured in India (other than the goods manufactured in a free trade zone or by a hundered percent export-oriented undertaking) and used in the manufacture of final products in any case in India shall be restricted to the extent of Rs. 500 per tone or the actual duty paid whichever is less. 6. The appellant has been contesting that the material received by them was from the breaking up of ships of foreign ori ..... X X X X Extracts X X X X X X X X Extracts X X X X
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