Duty-paid scrap proof required for Notification No. 202/88 and deemed Modvat credit; refund denial upheld.

Entitlement to Notification No. 202/88 benefit and deemed Modvat credit depended on proof that the MS scrap used as re-rolling material had suffered duty. The supplier's bills and gate passes did not show any particulars of duty payment, so no presumption of duty-paid status arose and the burden remained on the appellant to prove it. In the absence of such evidence, the refund claim was not maintainable. The denial of refund was therefore upheld.

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Issues: Whether the appellant was entitled to the benefit of Notification No. 202/88 and deemed Modvat credit in respect of MS scrap used as re-rolling material, without proof that the scrap was duty paid.

Analysis: The benefit of the notification and the alternative claim of deemed credit both depended on proof that the input scrap had suffered duty. The record showed that the bills and gate passes issued by the supplier did not contain particulars of duty payment. In the absence of such material, no legal presumption of duty payment could be drawn, and the burden remained on the appellant to establish that the scrap was duty paid.

Conclusion: The appellant was not entitled to the benefit of Notification No. 202/88 or deemed Modvat credit. The order denying refund was justified and was upheld.

Final Conclusion: The appeal failed because the appellant did not establish the duty-paid character of the scrap, and the Collector (Appeals) correctly reversed the refund.

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