Deemed Modvat credit fails where inputs are identifiable as non-duty paid goods on the assessee's own admission.

Deemed Modvat credit was unavailable for steel wires cleared under Notification No. 208/83 because, on the appellants' own admission, the inputs were manufactured from duty-paid billets and rods but were identifiable as non-duty paid goods at the relevant stage. The dispute was limited to eligibility for deemed credit, and the asserted reliance on an earlier Tribunal decision failed because the factual foundation for the concession was absent on the appellants' case. The analysis turned on the character of the inputs as non-duty paid, which defeated the claim to deemed credit.

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Issues: Whether the appellants were entitled to deemed Modvat credit on steel wires obtained by them when those wires were admitted to have been cleared under Notification No. 208/83 and were therefore identifiable as non-duty paid inputs.

Analysis: The only dispute before the lower authorities was entitlement to deemed credit. The appellants had themselves admitted that the steel wires were manufactured out of duty-paid billets and rods and cleared under Notification No. 208/83. On that admission, the inputs were clearly recognisable as non-duty paid. The contention that the matter was covered by an earlier Tribunal decision did not assist the appellants because the factual basis for claiming deemed credit was absent on their own case.

Conclusion: The appellants were not entitled to deemed Modvat credit on the disputed inputs.

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