9911796707
TMI Blog2011 (7) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... is case is from April, 1986 to August, 1986. One of their main input is iron and steel scrap and other inputs are Graphite Electrodes, Nipple Stopper Heads, Ramming Mix, Magnesite Refractory Cement and Mortar. When the Modvat scheme was introduced from March, 1986, the Central Government under 2nd Proviso to Rule 57 G(2) of the Central Excise Rules, 1944, issued an order dated 7.4.1986 ordering that certain goods mentioned in that order and which were received as inputs and were lying in stock on or after 1.3.1986 would be deemed to have suffered duty at the rate specified in that order and Cenvat credit of that duty would be available to the manufacturers without production of documents evidencing the payment of duty. However, one of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctrodes and Ramming Mix Mortar are concerned, the Modvat credit is available and as regards, Deemed Modvat credit in respect of iron and steel scrap is concerned, while Modvat credit is available for the period till 28.08.1986, Deemed Modvat credit in respect of iron steel scrap would not be available in respect of the quantity which was received during the period w.e.f. 29.08.1986, as the Central Government vide order dated 29.08.1986 issued under Rule 57 G(2) had modified its earlier order dated 7.4.1986 and w.e.f. 29.08.1986 the facility of Deemed Modvat credit in respect of iron and steel scrap had been withdrawn. The Commissioner, therefore, confirmed the Cenvat credit demand of Rs.10,83,763/- in respect of the quantity held to have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have paid duty specified in Col.4 of the said table and the credit of the specified duty at the rate specified in respect of such input used in the manufacture of such final product, on which duty of excise is leviable either in whole or in part may be allowed at the rate specified in Col.4 of the said Table without production of documents evidencing payment of duty. This order was subject to certain conditions and one of the conditions was that this deemed credit would not be available if such inputs are clearly recognisable as being non-duty paid or are chargeable to nil rate of duty . In this case, there is no dispute that the iron and steel scrap is covered by this deemed modvat credit order. Initially, the dispute was that the deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 7.4.1986 was withdrawn in respect of iron and steel scrap with effect from 29.08.1986, the consignments of iron and steel scrap received upto 28.08.1986 would be eligible for deemed modvat credit irrespective of the date on which the entries were made in the RG-23A Part-II register, as the availability of deemed credit is linked with the quantity of the specified inputs lying in stock on or after 1.3.86 and upto 28.08.1986. The date of receipt of the consignment in the factory has to be determined with reference to the date on which the intimation regarding their receipt for D-3 Format to the department was made and the entries were made in the RG-23 A Part-I register. We also find that the Commissioner, in para 17 of the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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