9911796707
TMI Blog1994 (12) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... . 500 per M.T. or more. In terms of Notification No. 177/86-CX, dated 1-3-1986 as amended, the Modvat Credit on goods obtained from breaking up of ships, boats and other floating structures is restricted to Rs. 500 per M.T. or the actual duty paid whichever is less. Heading No. 72.30 and 73.27 of the Central Excise 1985 (5 of 1986) covers the goods and material obtained by the breaking up of ships, boats and other floating structures. I find the party was entitled to take credit of Rs. 500 per M.T. 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. 500 per M.T. which is not admissible to the noticee party in terms of Notification No. 177/86-CX, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and other floating structures is restricted to Rs. 500 per MT or the actual duty paid whichever is less; that Heading Nos. 72.30 and 73.27 of CETA, 1985 cover the goods and materials obtained by the breaking up of ships, boats and other floating structures; that the appellant was entitled to take credit amounting to Rs. 500 per MT or actual duty paid whichever is less in respect of raw material/inputs falling under Chapter Heading 72.30 and 73.27 of the CETA, 1985 and that the appellants had taken credit even exceeding Rs. 500 per MT which was not admissible to them under Notn. No. 177/86, dated 1-3-1986 as amended. A show cause notice was accordingly issued to the appellant asking them to explain as to why the excess amount of Modvat credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly held that modvat credit in excess of Rs. 500/- was not admissible to the appellants and had passed the orders accordingly. It was also argued by the ld. JDR that Notn. No. 65/89 talks of charging of customs duty on the aforesaid goods and does not allow the appellant to take credit for this amount of duty; that the only appropriate notification allowing modvat credit of duty was Notification No. 177/86, dated 1-3-1986. 4. The appellants in their grounds of appeal have submitted that the issue involved in the instant case has already been decided by the Tribunal while disposing of Appeal No. E/4333-4334/91-NRB vide Final Order No. A/134-135/95-NRB in the matter of Collector of C. Excise, Chandigarh v. M/s. Aarti Steel Ltd., Ludhiana and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a. The appellants relied on Notn. No. 65/89, dated 1-3-1989 and submitted that this Notification prescribed higher rates of duty for scrap obtained from breaking up of ships, boats and other floating structures of foreign origin, and therefore, they should be allowed the benefit of credit on inputs of duty at a rate higher than Rs. 500/-. 7. On examination of Notification No. 65/89, dated 1-3-1989, I find that this is a charging notification issued under sub-rule (1) of Rule 8 of the Central Excise Rules whereas Notn. No. 177/86, dated 1-3-1986 has been issued under Rule 57A thereby specifying the inputs which will be eligible for input duty credit. Therefore, the case for taking credit of input duty shall fall under Notn. No. 177/86, dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the description of the goods. It has been decided that credit would be available at the restricted amount during the aforesaid period as the scheme of taking credit at the restricted rate has to be read in its totality. Although the material obtained from the breaking up of ships etc. were not covered under Heading Nos. 72.15 and 73.09 mentioned in the Notn., the description of goods under Tariff Headings 72.30 and 73.27 made it very clear that the restricted amount of credit was available for the goods and material obtained from the breaking up of ships etc. Thus, during the aforesaid period, the credit is available at the restricted rate for goods obtained from the breaking up of the ships etc. even though the Notification No. 177/86 did ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
