9911796707
TMI Blog1998 (3) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... der No. F. TS-36/94-TRU, dated 1-3-1994. The Department alleged that re-rollable material on which deemed Modvat credit was claimed, was purchased from Central Railway, Jhansi; that the scrap purchased from the Railway is clearly recognisable as being non-duty paid because the scrap had not suffered duty at any stage. It was also alleged that re-rollable material purchased from Kabaris is also not admissible for deemed Modvat credit in the light of the Ministry of Finance, Deptt. of Revenue Lr. No. B-22/5/86-TRU, dated 7-4-1986 as they are clearly recognisable as being non-duty paid. The lower authorities, therefore, denied the benefit of deemed Modvat credit on re-rollable material. 3. Shri B.C. Jain, the ld. Consultant submitted that de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is that the goods should be duty paid and that only the production of duty paid documents has been done away with. The ld. DR submitted that there are judgments supporting the view that only duty paying documents are dispensed with and that duty paid character of the goods is established. He submitted that the Larger Bench of this Tribunal in the case of Machine Builders v. CCE [1996 (83) E.L.T. 576] has considered all the orders of the Government of India on deemed Modvat credit and observed that a manufacturer who seeks the benefit of the Government orders issued under proviso to Rule 57G (2) must take a definite stand and to the extent necessary produce documents and marshall arguments and logic to show that he is entitled to the ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of this Tribunal had considered the Central Government Orders Dated 7-4-1986, 3-11-1987 and 2-5-1987. In all these orders, there was a stipulation that no credit shall, however, be allowed if such inputs are clearly recognisable as being non-duty paid or charged to NIL rate of duty. It was in this context that the Tribunal observed as indicated above. Before me, there is the Government of India letter dated 1-3-1994. In this letter, there is no stipulation about the recognition of the goods as duty paid. The only stipulation is that the re-rollable material lying in stock on or after 1-4-1994 shall be deemed to have paid duty and eligible for deemed credit at a rate of Rs. 920/- per M.T. There was no stipulation about the inputs being ..... X X X X Extracts X X X X X X X X Extracts X X X X
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