9911796707
TMI Blog1996 (9) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... cise Tariff as in force from 28-2-1986. The respondent M/s. Bajaj Sons (P) Ltd., Ludhiana had taken the deemed credit on the above mentioned inputs, which they had purchased from the open market, at the rate of Rs. 365 per M.T. They have taken deemed credit on the understanding that such credit was allowed under Ministry s Order No. B22/5/86/TRU dated 7-4-1986 issued under Rule 57G(2) of the Central Excise Rules, 1944. A show cause notice was issued to the respondent on 30-4-1987 alleging that while taking deemed credit on the inputs they had not given proper description relating to those inputs had not submitted the proper documents or any other evidence which could prove that the duty liability on these items of iron and steel had been pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be disposed of in the light of the written submissions. For the appellant/Revenue Shri M. Jayaraman, JDR is present. He briefly stated the facts and referred to the Tribunal s larger bench decision in the case of Machine Builders v. C.C.E. - 1996 (83) E.L.T. 576 (Tribunal). He submitted that the inputs in question in this proceeding enjoyed exemption from duty under Notification No. 208/83 which was the subject matter of Appeal No. E/384/88 before the larger bench referred to above. The Tribunal had held that the benefit of deemed credit was not available to the assessee. He referred to Para 25 of the decision. 3. We have carefully considered the matter. The respondents were bringing iron and steel materials like M.S. Rounds/flats/wire a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed under proviso to Notification No. 55/86-C.E., dated 10-2-1986 was claimed on the ground that the inputs had been manufactured with the aid of electric furnace and documentary evidence exists to show that the reduced duty had been paid on such inputs. In such cases only actual duty paid was to be allowed. Under Notification No. 208/83-C.E., dated 1-8-1983 as amended exemption was granted to the final products which were made from any goods of the description specified in the corresponding entry in Column 2 of the table annexed to that Notification on which the duty of excise leviable under the Act had already been paid. It was explained that for the purposes of that Notification old stocks of inputs except such inputs as are clearly recog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il duty paid goods. The Collector (Appeals) set aside the order holding among others that the Modvat credit would be available to wires brought from the market and the position would not alter merely because the appellants purchased the same directly from the drawing units. With regard to this appeal the Tribunal in Para 25 of their order held as under : Respondent purchases steel wire from units redrawing the same from duty paid wire rod which is exempt from duty under Notification No. 208/83. Respondent use the steel wire to manufacture bolts and nuts. The input used by the respondent definitely enjoyed duty exemption and hence the case attracts the second exception in the Government order dated 7-4-1986. Collector (Appeals) was in err ..... X X X X Extracts X X X X X X X X Extracts X X X X
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