Deemed credit on aluminium shots upheld where duty-paid ingots, same classification, and revenue neutrality prevented excess credit.

Deemed credit on aluminium shots was held admissible where the shots were manufactured from duty-paid aluminium ingots and both products fell under unwrought aluminium attracting the same duty rate. The Tribunal found that the credit claimed on the shots could not exceed the credit otherwise available on the ingots, so no excess credit had been taken. On that factual and classification basis, the dispute was treated as revenue neutral and the demand was set aside, with the benefit claimed upheld.

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Issues: Whether the assessee was entitled to deemed credit on aluminium shots when the aluminium shots were manufactured from duty-paid aluminium ingots and the situation was revenue neutral.

Analysis: The assessee had given intimation under Rule 57F(2) for job work and had taken deemed credit on aluminium shots instead of taking credit directly on aluminium ingots. The Tribunal found that aluminium ingots and aluminium shots were classified under unwrought aluminium, that the duty rate on both was the same, and that the credit claimed on aluminium shots could not exceed the credit otherwise available on the duty-paid ingots. On that basis, the Tribunal held that no excess credit had been taken and that the matter was revenue neutral.

Conclusion: The assessee was entitled to the benefit claimed and the Tribunal's order setting aside the demand was upheld.

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