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TMI Blog1997 (8) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... eing disposed of by this common order. 2. The common issue involved is whether `MS sheet cuttings' can be considered to come within the expression "steel sheets" mentioned in column 2 of the Govt. of India Order No. 342/1/88-TRU, dated 1-3-1989 followed by its Order No. 342/1/88-TRU, dated 1-6-1989. 3. All the appellants are engaged in the manufacture of `MS Ingots'. They obtain `MS sheet cuttings' from the market and use them in the manufacture of their final product namely `MS Ingots'. By the Govt. of India orders dated 1-3-1989 and 1-6-1989 deemed credit had been allowed on inputs described as `steel sheets' of thickness not exceedings 5 mm. and whether or not in coils. The relatable Chapter Headings/sub-headings in the Tarif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing regard to the demand and supply position of any inputs in the country and any other relevant considerations, all stocks of specified inputs in the country except such stocks lying in a factory, Customs area or a warehouse etc. may be deemed to be duty paid and credit of duty on the said inputs may be allowed at such rate and subject to such conditions as the Central Govt. may allow on the basis of documents evidencing payment of duty. In exercise of the said power, the Central Govt. had issued an Order No. 342/1/88-TRU, dated 1-3-1989 and subsequently another Order No. 342 (a) 88-TRU, dated 1-6-1989 by which deemed credit of Rs. 500/- MT. was allowed inter alia on `Steel sheet' of thickness not exceedings 5mm. and falling under Heading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that sheets including cuttings of such sheets are classified under the same Tariff entry. 9. The Collector (Appeals) had however held that merely because two items covered by the same Tariff entry for the purpose of classification it could not be argued that the two items become identical. Collector (Appeals) had referred to the definition to the sheets as given in Chapter 72 prior to its restructuring defining sheet as "a hot or cold rolled flat product rolled in rectangular section of thickness below 5 mm. and supplied in straight lengths and width of which is at least 100 times the thickness and the edges are either milled, trimmed, sheared or flame-cut and includes a corrugated sheet." Since the definition did not stipulate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings of the Collector (Appeals) holding that sheet cuttings could not be considered to come within the expression "sheet" and that the inputs namely `sheet cuttings' were more in the nature of waste and scrap. 13. We have considered the submissions and perused the records. The question for consideration falls within a very narrow compass. The Larger Bench of the Tribunal in the case of M/s. Machine Builders and Others v. CCE reported in 1996 (83) E.L.T. 576 (Tribunal) = 1996 (12) RLT 817 has held that where there is a conditional exemption Notification in respect of inputs on which deemed Modvat credit is claimed, it is up to the Department to show that the conditions for such exemption have been fulfilled. In the cases before us we f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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