1993 (4) TMI 145

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.... scrap of copper purchased from open market and were availing of exemption under Notification No. 178/88. An allegation was made in the show cause notice dated 6-9-1991 to the effect that the scrap is converted into billets and since no duty is paid on billets, in terms of the same notification, the final products bars and rods made out of the exempted billets are not entitled for exemption. There is also an allegation to the effect that during the material period, there was provisional assessment. However, Shri Attar pleaded that the Collector (Appeals) initially accepted their appeal on the ground of time bar and remanded the case back with the direction to place the papers before the Collector who however, held that during the material p....

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.... the following position, undisputed : (i) Copper scrap purchased from the market are recognised as input which is specified in the exemption notification. If that is used and no modvat/proforma credit is taken in respect of the duty involved on this input and copper bars/rods are manufactured therefrom, exemption in respect of such bars/rods is available in terms of the notification; (ii) The Chapter relating to copper is covered by the Modvat Scheme. Hence, duty paid on copper in one form, if used as an input, in the conversion into another form, modvat credit is available; (iii) As per the said exemption notification, even billets manufactured out of such copper scrap are exempted; (iv) Bars and rods cannot be manufactured fro....