1992 (5) TMI 110

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ppeal is as to whether the respondent herein would be entitled to take deemed credit in respect of the "steel melting scrap" purchased by them from the market for the period 1-3-1986 to 28-8-1986 after steel melting scrap came to be exempted from payment of duty under Notification 54/86, dated 10-12-1986. 3. Shri Jayaseelan, the learned D.R., contended that once the inputs became exempted by virtue of the notification in question the respondent would not be entitled to take deemed credit unless they prove that the goods had suffered duty. The learned D.R. further submitted that in the context of the issuance of the notification the onus would automatically shift on to the assessee to prove that the goods had suffered duty. 4. Heard Sh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....deemed MODVAT Credit and the onus not having been discharged and the respondent's plea that the goods were purchased in open market not" having been rebutted by any acceptable evidence, we uphold the impugned order and dismiss the appeal. 6. [Assent per: V.P. Gulati, Member (T)]. I agree I observe that the learned lower authority allowed the benefit of deemed MODVAT Credit in terms of Government of India's statutory order No. 332/30/97/TRU dated 7-4-1986. Under this order the Government of India has directed that deemed credit of Rs. 365 per metric ton should be allowed in the case of iron and steel scrap purchased from the market if it is not clearly recognisable as non-duty paid. The plea of the Revenue is that inasmuch as under Notifi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e given to the scrap. As it is Notification 54/86 is a conditional notification and covers the scrap which has arisen out of the duty paid materials falling under certain tariff headings. It cannot be said that it is of such wide import that it covers all types of iron and steel scrap that will be arising in the course of manufacture. There is nothing in the order of the learned original authority or in the grounds of appeal to say that the nature of scrap is such that it can be contended that this is covered by the Notification 54/86. In the face of that it cannot be accepted that just because Notification 54/86 was in existence the statutory order of Government of India can be taken to have become superfluous, as pleaded by the learned D.....