9911796707
TMI Blog1995 (3) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act ) praying for waiver of the pre-deposit of the Central Excise duty amount of Rs. 8,84,194.44 and stay of the recovery thereof, pending disposal of the appeal. 2. The Stay application was heard on 17-1-1995 when Sh. R. Nambirajan, Advocate appeared for the applicant. Sh. Somesh Arora, JDR represented the Respondent. 3. Shri R. Nambirajan, the ld. Advocate stated that the applicant were bringing duty paid cold rolled steel sheets from outside, and were taking Modvat credit of the duty paid on such sheets. There was no suppression of the facts and that the matter was covered by the Tribunal s earlier Stay orders in their own case. They were also a sick unit. In support of stay application, reliance was placed on the Tribunal s deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CCE (Appeals) reported in 1992 (62) E.L.T. 290 (Cal.). 6. We have carefully gone through the matter. Although, presently we are concerned only with the disposal of the Stay application, we have thought it fit to deal with the matter in little detail particularly in view of the applicant s reference to some earlier Stay orders of this Tribunal. 7. M/s. Bharat Berg Ltd. were engaged in the manufacture of Galvanised Cold Rolled (CR) Steel Sheets falling under Heading No. 72.10 of the Schedule to the CETA, 1985 (hereinafter referred to as the `Tariff .) The Galvanised CR Sheets were their final product. For use in the manufacture of their final product, they were bringing duty paid CR Coils, which were their inputs. They took credit of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or scrap. Such duty on waste and scrap was much lower than the credit of the specified duty they have already taken and which credit have been utilised for payment of duty on their finished product. It appears that the cut sheets have not arisen from the processing of uncut cold rolled coils, and that such cut sheets were of use as such. Cutting of sheets/coils etc., may also not amount to the process of manufacture in itself. The Asstt. Collector of Central Excise, Raibareili who had adjudicated the matter had come to a finding that the deformed/deshaped/defective CR Coils which were on receipt in the factory found unfit for use in the manufacture of final product, were clearly not used in or in relation to the manufacture of their final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods, or the manufacturer, who had already taken credit of the duty paid by the supplier. He has already availed of the credit of duty paid by the supplier of inputs, under the provisions of Modvat scheme. The demand in such a situation is in the nature of paying back to the exchequer what has already been enjoyed. There is no relevancy of collection of duty from the purchaser as the duty paid by the suppliers had already been utilised by the applicants. 12. As per 8th Annual Report 1993-94, the production achieved during the year was the highest so far achieved by the company (refer `operations ), and the company expected to achieve the full capacity utilisation during the year (refer `current outlook ). Declaration by the Board for I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the duty paid thereon by the supplier has been availed of and utilised by the purchaser, could be considered, when disposed of in the manner and in the form as in the present case, to have been used in or in relation to the manufacture of the final product. We have analysed the matter in the light of the latest Supreme Court s decision referred to by us above [reported in 1995 (75) E.L.T. 3 (SC)]. Reference has also been made to the Tribunal s decision in the case of Bajaj Auto Ltd. reported in 1995 (75) E.L.T. 382 (T). Thus, prima facie, the applicant had no case on merits. There is no case also on the ground of limitation as well as financial hardship. The earlier stay orders had no precedent value. Further, we have analysed the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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