9911796707
TMI Blog2007 (1) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... o interest at the appropriate rate on the duty confirmed. The duty demand consists of four components (i) duty on scrap (MS scrap/SS scrap) cleared without payment of duty for the period 1995-96 to 1997-98 - Rs. 1,81,665/- (ii) duty on scrap cleared without payment of duty during the period April to September 98 - Rs. 1,72,612/- (iii) Disallowance of Modvat Credit on CRCA Sheets/Coils to the extent of 20% less quantity of material received - Rs. 8,94,542/- and (iv) Modvat credit fraudulently availed on CRCA Sheets/Coils purchased from M/s. Kunal Corporation and diverted into the market during the period April 98 to June 98 - Rs. 10,24,323/- and during the period July 98 to November 98 - Rs. 1,20,519/-. 2. We have heard both sides. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving clandestine clearances of scrap during the period 1996-97 and 97-98. We, therefore, hold that the demand of duty for this period is not sustainable and accordingly, set aside the demand of Rs. 1,81,665/- 4. As regards the denial of Modvat credit, the plea of the appellants is that the provisions of Rule 57-I, which have been invoked for the purpose of recovery of credit not being in force at the time of issue of show cause notice i.e. 19- 4-2000, the credit cannot be recovered under Rule 57-I in the light of the Tribunal's order in the case of Sunrise Structurals Engineering Ltd., Final Order No. A-711 to 722/WZB/2004-C-II dated 27-8-2004. 5. We have gone through the above decision. The Tribunal has analysed the relevant prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 3A from the Central Excise Act, 1944, the liability is not wiped out does not come to the rescue of the revenue as in the present case, we find that the direct issue in dispute namely, as to whether Section 38A would include "substitution", has been dealt with squarely by the Tribunal's order cited supra in the case of Sunrise Structurals Engineering Ltd., in which analysis has been made of various Supreme Court's judgment on certain expression in saving clauses. 6. Following the ratio of the Sunrise Structurals Engineering Ltd. case, we held that recovery of credit under the provisions of Rule 57-I in this case is required to be set aside and we order accordingly. 7. Since we have upheld the finding of the clandest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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