9911796707
TMI Blog1996 (7) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... said parties are not manufacturers. It is obligatory on the part of the parties claiming Modvat to prove that the inputs were purchased from manufacturers or outside if the deptt. so desires but in the present case, the appellants have failed to discharge this obligation even when it was proposed to disallow the credit. Thus, it is clear that the goods were in fact purchased from different manufacturers and failure on the part of the appellants to adduce duty paying document further proves that the goods are non-duty paid and therefore, no credit is admissible. Under such circumstances, I uphold the orders of Asstt. Collector. 4.3 The appeal is rejected disposed of accordingly." 2. The facts of the case, in brief, are that the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Collector, Central Excise (Appeals) in his Order Nos. 252-255-CE/CHG/88, dated 16-6-1988 wherein he had allowed the credit of duty paid on inputs in respect of the very same inputs in the petitioner s own case. It was argued by the appellants that expression used in or in relation to the manufacture of final products is very wide and encompasses the entire process carried on by the manufacturer. The appellants for this contention cited and relied upon the judgment of the Apex Court in the case of J.K. Cotton Spinning and Weaving Mills v. STO (16 STC 563). The various items on which the department proposed to deny the credit of duty against the inputs were described in detail by the appellants. 3. The appellants also agitated the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present appeal is whether deemed Modvat credit was admissible to the appellants on copper scrap/wire and aluminium. He submits that it has clearly been held by the Asstt. Collector that It is observed that the said goods were purchased from the factory and in this case, no deemed credit was admissible. The party can avail the deemed credit facility only if the goods are clearly recognisable as non-duty paid or charged to nil rate of duty. In the instant case, the goods were purchased from the factory. The learned SDR reiterating the findings of the lower authorities submitted that the deemed Modvat credit has rightly been denied by the lower authorities and prayed that the appeal may be rejected. 6. None appeared for the appellants. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) If such inputs are clearly recognizable as being non-duty paid or wholly exempt from duty or charged to nil rate of duty. These orders have been issued by the Central Government on the basis of the enabling proviso to Rule 57G (2) to extend the benefit of Modvat credit to certain manufacturers who would otherwise be not entitled to it. Therefore, the scope meaning and intent of the Government Orders must be considered in the backdrop of parent Rule and the Rules in Section AA which incorporates the Modvat Credit Scheme. 19. There can be only four contingencies in which duty is not paid on goods. They are :- (i) No duty is prescribed or nil rate of duty is prescribed for the goods in the schedule to the Tariff Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f duty must be understood not in the narrow sense of nil rate of duty being stated for the inputs in the schedule to Tariff Act, but in the general sense that actually no duty has been demanded or paid. The case of inputs wholly exempt from duty would also be attracted (Government Order dated 7-4-1986 and 30-5-1988). (iii) The words wholly exempt from duty would take in cases of unconditional exemption of whole of the duty payable and also conditional exemption of such duty where conditions are shown to have been satisfied." In the instant case, the Asstt. Collector, in his order, has clearly stated that the goods were purchased from the factory where they were manufactured and as no duty paying document was produced by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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