Deemed credit on rejected iron and steel scrap denied where used re-rollable materials were treated as non-duty paid scrap.

Deemed credit was denied on used and rejected re-rollable iron and steel scrap, including old rails, wheels and sleepers sold by Railways. The Tribunal treated the goods as rejected re-rolling material and, in substance, non-duty paid scrap, so the benefit under the deemed credit order was unavailable. It also followed its earlier order in the same line of matters, where the reference application had been rejected. The claim for deemed credit was therefore rejected and the reference was dismissed.

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Issues: Whether deemed credit was admissible on used and rejected re-rollable iron and steel materials, such as old rails, wheels and sleepers, sold by Railways as scrap.

Analysis: The Tribunal held that the materials in question were rejected re-rolling material and, in substance, non-duty paid. On that basis, the benefit of the deemed credit order was not available. The Tribunal also followed its earlier order in the same line of matters, where the reference application had already been rejected.

Conclusion: The claim for deemed credit was rejected and the reference application was dismissed.

Final Conclusion: The decision confirms that used and rejected re-rollable iron and steel scrap was not eligible for deemed credit under the cited orders, and the reference was finally disposed of against the assessee.

Ratio Decidendi: Deemed credit is not available on rejected and used re-rolling materials treated as non-duty paid scrap.

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