9911796707
TMI Blog1997 (7) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... recognisable as non-duty paid. In one case i.e. in the first Appeal, the lower appellate authority has held that the goods were purchased by the respondents M/s. New Allenbery Works from the market and no evidence has been produced by the Revenue to show that the said goods on which deemed credit has been taken were clearly recognisable as non-duty paid namely, that they were fully exempted under any Notification or otherwise chargeable to nil rate of duty. In the other case, the same lower appellate authority has taken up a view that since inputs were covered by 208/83, they have, therefore, to be treated as clearly recognisable as non-duty paid. Hence the benefit of Modvat credit was denied in the second case i.e. M/s. M.S. Industries and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, must have been availed of by a manufacturer. It is not unreasonable and impracticable to assume that a manufacturer will not avail of the said Notification while releasing the goods to the market and that is why he submits that it has been held in the Head Note quoted above, that since redrawn wire drawn from duty paid wire rods, used as input by respondent being exempt from duty under Notification No. 208/83. Modvat credit in- admissible in terms of second exception in Government Order dated 7-4-1986. He, therefore, prays that the Revenue's Appeal in the case of M/s. New Allenbery Works be allowed and the Appeal of M/s. M.S. Industries be dismissed. 4. Opposing the contention of the ld. Advocate, Shri N. Mookherjee submits that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacturer but might have purchased from the Bazar. When the controversy arises in the appellate forum it is for the Revenue to satisfy the appellate forum that the conditions are satisfied in the given case and that the exemption has taken effect." He points out that it has been clearly held that the mere existence of an exemption Notification is not sufficient to show that the input is wholly exempt from duty or clearly recognised as not being duty paid or charged to nil rate of duty. The ld. Advocate also submits that the Revenue cannot be heard to say that it is for the assessee to show that the conditions (of exemption) are not satisfied and since he had failed to do so, the exemption must be regarded as having taken effect. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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