9911796707
TMI Blog1997 (7) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... k credit on the scrap for the manufacture of the ingots. He took credit on the ingredients scrap. The duty on this scrap is Rs. 365/- per MT which is available as credit, whereas the duty on the ingots manufactured out of the scrap is Rs. 315/- per MT. The appellant also used scraps which are secondary and on which no duty was paid. The adjudicating authority, therefore, held that the excess credit could not have been used by the appellant in view of the fact that the imported scrap was not subjected to CVD. It is against this order the appellant has come up before the Tribunal. 2. The learned Advocate for the appellant contended before us that the issue is squarely covered by the decision of the Tribunal in 1989 (41) E.L.T. 181 (Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordance with the declaration filed under Rule 57G. The appellants' case is that they have in fact, utilised the credit earned by them on the input scrap only on the single final product that they manufactured viz., steel ingots and that the provisions of Rule 57F(3) as above do not bar such utilisation when admittedly there is no one to one correlation between the input and output under the Modvat scheme. Examining this issue, it is observed that what Rule 57F(3) basically provides is that the credit of duty allowed in respect of any input can be utilised towards payment of duty on any of the final product in or in relation to the manufacture of which such inputs are used. A plain reading of the Rule, when considered in the background of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pter X without payment and on payment of duty. The duty on ferro alloys is much more than on the final products. Therefore, there is always excess accumulation of credit as against the actual payment of duty on the final products manufactured therefrom. The credit thus earned on these inputs is being utilised by certain assessees for payment of duty on the finished product manufactured out of the non-duty paid inputs brought under Chapter X procedure. The matter has been examined by the Board. It is observed that what Rule 57F(3) basically provides is that the credit of duty allowed in respect of any inputs may be utilised towards payment of duty on any of the final products in or in relation to the manufacture of which such inputs are in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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