1994 (3) TMI 232

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...., they have filed only one appeal against the Order-in-Original No. VGN(30) 396/Denovo-Adj/T-s/88/288, dated 6-1-1989 of Asstt. Collector of Central Excise, Nasik-I Division. 2. After hearing both the sides, we find the following position, which is not disputed by both the sides. The appellants holding a Central Excise Licence for the manufacture of parts of Transmission Towers, Welding Masts, Poles etc. They are also a Small Scale Unit availing the exemption under Notification No. 175/86. They received input materials from M/s. Jyoti Structures under delivery challans, on the basis of which they took deemed Modvat Credit in respect of the steel materials, as available to them in terms of the Boards' Order dated 7-4-1986. The appell....

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....ppeals) has observed that a fraud is being committed in the process, by avoiding procedure prescribed under Rule 57F(2) in this ingenious manner. Jyoti Structures, who are receiving various materials ought to have sent these materials under Rule 57F(2) by taking credit, instead they resorted to sending them directly to the appellants and the appellants are being utilised because of their status as Small Scale Unit, for payment of duty at the lower concessional rate so that Jyoti Structures could take higher notional credit and get the benefit both ways. The thrust of the observation no doubt appeals to us, but here the case before us is the eligibility for deemed Modvat Credit for the appellant who is admittedly a licenced Small Scale Unit ....