Deemed credit under Notification No. 58/97-C.E. required fresh verification where input duty liability remained unsettled.

Deemed credit under Notification No. 58/97-C.E. was discussed in the context of input manufacturers' duty liability remaining under challenge. Because the Tribunal had already remanded or allowed the connected appeals concerning the input manufacturers, their actual duty payment could not be finally determined without fresh verification by the adjudicating authority. The matter was therefore required to be reconsidered after hearing the appellants, and the impugned orders were set aside with a remand for fresh decision.

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Issues: Whether deemed credit under Notification No. 58/97-C.E. was admissible where the duty liability of the input manufacturers was under challenge and required verification after the Tribunal's earlier orders.

Analysis: The appeals concerning the input manufacturers had been either remanded or allowed by the Tribunal. In that situation, the question whether the manufacturers of the inputs had paid the appropriate duty could not be finally determined without fresh verification by the adjudicating authority. The matter therefore required reconsideration after affording the appellants an opportunity of hearing.

Conclusion: The impugned orders were set aside and the matter was remanded to the adjudicating authority for fresh decision.

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