9911796707
TMI Blog2007 (10) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... , CTD Bar/rods falling under Chapter 72 of Central excise Tariff Act, 1985. The factory of the appellant was visited by the officers of the Central Excise and on scrutiny of records; it was found that various materials like M.S. Scrap, turning and boring scrap, and ship breaking scrap were procured by the appellant from various suppliers. It was also noticed by the officers that the appellant company was procuring CTD bars, MS. bars, rounds, MS flats, MS Plates, pipe and tubes, joist and channel of prime quality from various registered dealers. 3. On further enquiry by the officers, it was found that the suppliers supplied prime quality material and based on this conclusion the appellants were charged, that they could not have used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived by them from suppliers, who are registered dealer and were more or less on the same price, as supplied by the manufacturer. 5. He further submits that the issue in this case is squarely covered by the decision of Division Bench of Tribunal in the case of Gupta Metal Industries Vs. CCE, Delhi, as reported at 2004 (178) ELT 805 (Tri.-Del). 6. Ld. SDR on the other hand submits that it is an admitted fact that the Joists, CTD bars and MS. bars were in fact of prime quality. If they are of prime quality, they could not have used for melting purpose. It is his submission that in the decision cited the appellant company herein has clearly indicated that the said materials were used for manufacturing the final products of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edit cannot be denied to the appellants. I am fortified in my above view by the decision of Division Bench in the case of Gupta Metal Industries (supra), the ratio is read as under:- "We find that a manufacturer is entitled to take credit in respect of inputs used in or in relation to the manufacture of final product. The sheets having thickness of 1.6mm or less are used in the manufacture of poles supplied to the DOT. This fact is admitted in the adjudication order. In this situation, when the inputs are used in the manufacture of final product, the benefit of Modvat credit in respect of such inputs cannot be denied on the ground that these are costlier inputs or are not as per the specification of DOT. The impugned order is set aside a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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