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TMI Blog1998 (12) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... n account and on orders received from suppliers who provided the raw material in the form of aluminium ingots. We are concerned with the latter situation. The appellant manufactured out of the ingots billets and from these billets the pipes in question. On 1-3-1994 the exemption from duty available to billets by Notification 180/88 was withdrawn. The appellant however did not pay duty and continued to utilise them in its factory without payment. Notice dated 14-2-1997 was issued to the appellant demanding duty on the billets cleared from 1-2-1995 to 1-3-1996. The notice invoked extended period under Section 11A by alleging suppression of the fact of manufacture of billets. The proposal which was confirmed by the Commissioner in the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty. The Commissioner s conclusion that the classification list did not indicate that the ingots were used in the manufacture of exempted goods, in which case Notification No. 217/86 would not be available therefore it does not call for interference. 5. Two contentions were raised by the Advocate for the appellant with regard to Modvat credit. The first relates to valuation of the goods. Since they were captively consumed and in the absence of values of comparable goods the value of the billets was determined by applying Rule 6(b)(ii) of the Valuation Rules on the cost of manufacture plus profits. The appellant had contended before the Commissioner that duty payable on the ingots and other materials used in the manufacture of the billet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Superintendent letter, reporting on queries relating to this aspect. The fact that the Assistant Commissioner considered it necessary to write to the Head Quarters office in this regard displays his belief that the matter was decided by the Commissioner. We are of the view that these two questions whether Modvat credit of the duty paid on ingots would be available for payment of duty on billets and whether, where the assessee did not take Modvat credit of the duty paid on inputs in arriving at the cost of the finished goods under Rule 6(b)(iii) the Modvat credit available could be deducted, should appropriately be decided by the Commissioner. Both involve consideration of facts and figures. 7. Accordingly we hold that duty was payabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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