Deemed duty credit turns on proof of supplier duty payment; a Range Superintendent certificate can establish eligibility.

Credit of deemed duty under Notification No. 58/97-C.E. depended on the assessee showing that inputs were received directly from the manufacturer under invoices declaring payment of appropriate excise duty under Section 3A of the Central Excise Act. A mere invoice reference to removal under Rule 96ZP(3) was not enough to prove duty payment by the supplier. The assessee bore the burden of proof, and a certificate from the concerned Range Superintendent was accepted as sufficient evidence. Once that certificate was produced, the earlier basis for denying the benefit no longer remained.

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Issues: Whether credit of deemed duty under Notification No. 58/97-C.E. was available when the assessee produced a certificate showing payment of duty by the supplier.

Analysis: The benefit of the notification depended on receipt of inputs directly from the manufacturer under invoices declaring payment of the appropriate excise duty under Section 3A of the Central Excise Act. Mere mention in the invoice that the goods were removed under Rule 96ZP(3) did not by itself establish discharge of duty. The burden lay on the assessee to prove payment by the supplier, and production of a certificate from the concerned Range Superintendent was one acceptable method of proof. Since the certificate had now been produced and the denial of benefit was based only on its earlier non-production, the basis for disallowance no longer survived.

Conclusion: The credit of deemed duty was available to the assessee and the appeal was allowed.

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