9911796707
TMI Blog1996 (8) TMI 470X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent. [Order per : V.P. Gulati, Member (T)]. The issue in the appeal relates to benefit of Notification No. 53/88 in respect of the scrap which is generated out of inputs which have been processed and in respect of which Modvat credit has been taken. The benefit of notification is available in case the scrap is generated out of duty paid materials. The plea of the appellants is that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter the duty burden in respect of the same had been lifted from the same by reason of taking of the Modvat credit of duty already paid on them, the same therefore became non-duty paid goods. He pleaded that in that view of the matter, the benefit of notification as claimed could not be allowed. 3. The learned Consultant has pleaded that the notification should be strictly construed and once it c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory these had suffered duty, but by reason of taking the Modvat credit in respect of the same so far as the duty paid character of the goods is concerned, the same changed and in terms of Rule 57F even if these were to be cleared as such these had to discharge duty as if the same had been manufactured in the appellant s factory. Thus a deemed fiction has been created to treat the goods in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the duty burden has itself been lifted from the goods, this condition therefore and the purpose for which the notification has been issued cannot be taken to have been complied with. The question of double levy of duty on the scrap i.e. once on the material contained in the scrap in the primary form and second time when it emerges as scrap would not arise, as from the primary material itself the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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