9911796707
TMI Blog2001 (10) TMI 413X X X X Extracts X X X X X X X X Extracts X X X X ..... h, Director of the appellant company, submitted that the appellants are manufacturing stainless steel ingots; that they are purchasing from open market aluminium scrap and copper scrap; that the Central Government under Order No. 342/1/88-TRU, dated 12-7-1990 and under Order No. 342/5/91-TRU, dated 7-7-1992 provided for availment of deemed Modvat credit in respect of aluminium and copper waste and scrap; that the Department has disallowed the deemed Modvat credit holding that the scrap being wear and tear scrap was clearly recognisable as non-duty paid and, therefore, the deemed Modvat credit was not available. He further submitted that the onus of proof is on the Department that the scrap purchased from the open market is non-duty paid; th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts, Shri Jagdish Singh, learned DR, submitted that the order dated 12-7-1990 provided the facility of deemed Modvat credit without production of documents evidencing payment of duty subject to the conditions that the input should not be clearly recognisable as being non-duty paid or wholly exempt from duty or charged to nil rate of duty; that in the present matter, the adjudicating authority has given a specific finding that the scrap in question was wear and tear scrap arising mainly of old and used articles; that such scrap cannot arise in a factory in the course of manufacture of aluminium/copper articles and accordingly there is no question of duty having been paid on such scrap. Thus the scrap in question is clearly recognisable as be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecisions relied upon by the learned Director of the appellant are not applicable to the facts of the present matter. In Kapson Electro Stampings, the issue involved was whether MS sheets purchased from open market were exempted from payment of duty under Notification No. 208/83-C.E. The Tribunal held in that case that the benefit of Notification No. 208/83 was available in respect of MS sheets on fulfilment of certain conditions and in view of this, it was for the Department to produce sufficient evidence in support of their contention that the MS sheets were cleared from the factory availing the benefit of the said notification. As the issue involved in the present matter is not the same, the facts being different, this ratio is not applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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