9911796707
TMI Blog1997 (2) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... es falling under Chapter Heading 8311.00 of the Central Excise Tariff Act, 1985. They availed of Modvat credit on inputs, namely, wire rods in the manufacture of their products during the period 10-5-1991 to 20-9-1991. The inputs were received by them from M/s. Sir Hind Steels Limited, Ahmedabad, a conversion agent for M/s. Tata Iron and Steel Company. The challans under which the inputs were received contained an endorsement to the effect that wire rods covered by the said challans had been cleared without payment of excise duty as per Notification No. 202/88, dated 20-5-1988 since the inputs material were duty paid. Since availment of credit in terms of Rule 57G could be only on the strength of duty paying documents which were not present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not paid any excise duty. He distinguished the case of National Metal Industries, another conversion agent of TISCO, since National Metal Industries were merely handling agents of TISCO with the facility of a stockyard for TISCO. In the instant case, according to the Collector the Sir Hind Steels Limited were manufacturers of wire rods out of billets supplied by TISCO. Since no duty has been paid on wire rods supplied by Sir Hind Steels Limited, no Modvat credit could be taken on the utilisation of such inputs and any such Modvat credit taken by the present appellants would be clearly not admissible. 5. When the matter was heard on 6-2-1997, ld. Counsel for the appellants fairly conceded that this question has now been settled by the La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Government of India in pursuant to the second proviso to said sub-rule. The Larger Bench had rejected the narrower view that the said Rule was intended only to protect revenue interest against clandestine clearances for the reason that in such cases it was unlikely that the actual user would have used such clandestinely cleared goods. In para 20 of the said judgment of the Larger Bench has summerised the specific situation where Modvat credit would be available under the notification read with Rule 57G(2). Paragraph 20 is extracted below for the sake of convenience. We, therefore, hold that the correct view is as follows - (i) The words inputs are clearly recognizable as being not duty paid comprehend all inputs on which it is p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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