9911796707
TMI Blog1999 (8) TMI 213X X X X Extracts X X X X X X X X Extracts X X X X ..... case, deemed Modvat credit of Rs. 4,07,589/- taken during the period March, 1993 to February, 1994 has been disallowed on the following two grounds : 1. Old scrap of railway material like old rails, wheels, angles, sleepers, etc., cannot be rolled/re-rolled directly and they do not fall in the category of rolled/re-rollable material for manufacture of products classified by the appellants and fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is not available to the Department for the purpose of taking deemed credit. Regarding the second ground of denial, his submission is that the appellants purchase a large quantity of railway scrap annually and the quantity covered by Rule 57H declaration is only to the extent of 360 MTs approximately, which were lying in stock on the date of filing of the declaration i.e. on 7-3-1994. He further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been rightly denied. He also draws my attention to the finding in paragraphs 12 and 13 of the impugned order wherein the Collector has dealt with the second ground of denial of credit and prays that the same view may be taken and the appeal rejected. 4. I have carefully considered the rival submissions and perused the case law cited by the learned Counsel. The case of Ravi Steels directly cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he quantity of 360 MTs was not yet used in the manufacture of their final products during the period covering Rule 57H declaration. Therefore, the second objection of the Department is also fails. 5. In the light of the above discussions, I hold that the appellants are entitled to deemed credit of the entire amount involved, set aside the impugned order and allow the appeal with consequential r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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