1994 (1) TMI 158

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....sed by the Assistant Collector of Central Excise, Rishra Division in Order No. 91/90 dated 28-8-1990. In terms of that order, the Assistant Collector disallowed the Modvat credit taken by the appellants to the extent of Rs. 71,427.60. 2. The facts of the case are that the Superintendent of Central Excise, Range-I of Rishra Division, issued a show cause notice-cum-demand notice No. 9/88 dated 8-4-1988 to the appellants, stating that they had contravened the provisions of Rules 57A, 57G(2) and 57F(2) of the Central Excise Rules, 1944 and had taken and availed of Credit of duty under Modvat Scheme as 'Deemed Credit' amounting to Rs. 71,427.60 against 19.841 M.T. of Zinc and Zinc articles, which was not admissible to them. 3. In the brief....

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....ugned order was passed. 5. The point that arises for our determination is whether the 'deemed credit' taken by the appellant Company on the above-said quantity of Zinc and Zinc articles is recoverable or not? 6. In this connection, it is seen that as far as 6.0078 M.T. of Zinc Alloy Ingots are concerned they were sold to the appellants by M/s. Century Aluminium Manufacturing Company Ltd. This metal was used for galvanisation process by the appellants. The Department made an enquiry with M/s. Century Aluminium Mfg. Co. Ltd. against which they had stated that these Zinc Alloy Ingots sold by them to the appellant Company were non-duty paid. These allegations were clearly mentioned in the show cause notice. It was also mentioned in the....

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....ns for not furnishing the same. But in this case, no such copy was demanded from the Department by the appellants. The appellants also did not dispute in reply to the show cause notice that the enquiry made from M/s. Century Aluminium Mfg. Co. Ltd. did not reflect the correct state of affairs. It, therefore, clearly goes to show that the enquiry with M/s. Century Aluminium Mfg. Co. Ltd. reveals that these Zinc Alloy Ingots supplied by them to the appellants were non-duty paid. An allegation was made in the show cause notice that this enquiry proves that these aluminium ingots are clearly recognisable as non-duty paid. In that view of the matter, the credit taken by the appellants with respect to 6.0078 M.T. of Zinc Alloy Ingots purchased fr....