9911796707
TMI Blog1997 (4) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... the proviso to Rule 57G (2). The Credit has been disallowed by the authorities below on the ground that M/s. Rourkela Steel Plant has not paid any duty of excise on the re-rollable scrap cleared by them vide their various Despatch Advices. The scrap cleared by M/s. Rourkela Steel Plant is in the shape of old, used and rejected M.S. scrap such as structure cutting, channel, angel, plate, pipe, Railbeam, C.I. Scrap etc. The appellants have failed before the authorities below and hence the said appeal. 2. The dispute revolves around the availability of deemed Credit in terms of Ministry s Order dated 1-3-1994 issued under Rule 57G (2) of the Central Excise Rules, 1944. The said Order for the sake of convenience and better appreciation is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll not apply in respect of the said deemed Credit Order dated 1-3-1994 firstly because the said Order was not before the Larger Bench for its consideration and secondly, the said Order is distinguishable from the other Orders issued by the Government of lndia under the provisions of Rule 57G (2). He emphasised that in the said deemed Credit Order there is no clause to the effect that no deemed Credit would be available in case the inputs are clearly recognisable as non-duty paid and/or chargeable to nil rate of duty etc. Such a clause, he submitted, is conspicuous by its absence in the said Order and invariably found place in the other Orders issued by the Government of India. From this, he submitted for the appellants that in the absence o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... description of the goods, the same are old, used, rejected and other scrap in the shape of structural and machinery equipments which are in the form of re-rollable scrap. As such, the scrap purchased by the appellants from M/s. Rourkela Steel Plant has to be equated to the scrap purchased from outside and as deemed to be duty-paid. I also find that there is no restriction clause in the said Order by Government of India restricting the appellants from availing the Modvat credit in case the inputs are clearly recognisable as being either non-duty paid or having been cleared at nil rate of duty. I fully agree with the submissions of the learned Consultant that this is one fact which places the said deemed Credit Order on a separate platform f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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