TaxTMI 
TaxTMI 
TaxTMI 
1999 (6) TMI 78
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.... to 6-6-1988. The Central Excise duty had been demanded on the ground that Notification No. 90/88-C.E., dated 1-3-1988 was superceded by Notification No. 202/88-C.E., dated 20-5-1988, withdrawing exemption available to the M.S. Flats exceeding 5 mm in thickness. In reply to the show cause notice dated 31-10-1988, the assessee had submitted that with regard to their inputs used in the manufacture of flats, they were eligible for the deemed Modvat credit at the rate of Rs 365 per M.T. (P.M.T.) in terms of the Ministry's letter F. No. 342/1/88-TRU, dated 20-5-1988 and that only a differential duty at the rate of Rs. 20/- P.M.T. (Rs 385 - Rs 365 P.M.T.) could only be demanded. Their inputs were steel rounds badame pieces roughly shaped which we....
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....ts were engaged in the manufacture of, among other products, M.S. Flats exceeding 5 mm in thickness. They were availing of the benefit of exemption Notification No. 90/88-C.E., dated 1-3-1988 under which, among other final products, flats exceeding 5mm in thickness were eligible for exemption from the payment of Central Excise duty, when made from duty paid pieces roughly shaped by rolling of iron or steel or from other inputs referred to under column (2) against serial No. 0.2 of the table annexed to the said Notification No. 90/88-C.E. The fact that the benefit of aforesaid exemption Notification No. 90/88-C.E. had been extended in favour of the flats exceeding 5 mm in thickness goes to indicate that the Department had taken a view that t....
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.... heading No. 84.54, and hot-rolled strips, other than galvanised strips, exceeding 5 mm in thickness." When Notification No. 90/88-C.E. was superceded by Notification No. 202/88-C.E., no mention was made of the flats in the description of the final products as given in the table annexed to that Notification No. 202/88-C.E. The description of the final products as given against serial No. 2 of the table annexed to Notification No. 202/88-C.E. is extracted below : "Granules and powders of steel; ingots or other primary forms of (i) non-alloy steel, (ii) stainless steel and (iii) other alloy steel, semi-finished products of (i) non-alloy steel, (ii) stainless steel and (iii) other alloy steel; pieces roughly shaped by rolling of iron or stee....
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.... than galvanised strips) exceeding 5 mm in thickness' shall be substituted." 5. From the applicable exemption notifications, it is seen that w.e.f. 20-5-1988 and prior to 1-3-1989 no exemption was available to the flats exceeding 5 mm in thickness under Notification No. 202/88-C.E. and to that extent the view taken by the adjudicating authority as confirmed by the Collector of Central Excise (Appeals) was correct. 6. As regards the benefit of deemed credit, the appellants had pleaded that they were eligible for the benefit of credit under Ministry's order No. 342/1/88-TRU, dated 20-5-1988. Their inputs were classified under sub-heading No. 72.07 and their final products were specified in the Notification No. 177/86-C.E., dated 1....
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....he following directions under the second proviso to Rule 57G(2) of the said rules. 2. The inputs specified in column (2) of the Table hereto annexed and falling under heading Nos. or sub-heading Nos. of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) specified in the corresponding entry in column (3) of the said Table, purchased from outside and lying in stock on or after the 1st day of March, 1988, with the manufacturers manufacturing the final products specified in the Notification No. 177/86-C.E., dated the 1st March, 1986, may be deemed to have paid the specified duty at the rate specified in column (4) of the said Table and credit of the specified duty in respect of such inputs used in the manufacture of the said final....
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....76.01 Rs. 2700 per tonne 7. Aluminium waste and scrap 76.02 Rs. 2300 per tonne 8. Unwrought lead and lead waste and scrap 78.01 and 78.02 Rs. 930 per tonne 9. Unwrought zinc and zinc waste and scrap 79.01 and 79.02 Rs. 3600 per tonne [Based on Ministry's letter F. No. 342/1/88-TRU, dated 20-5-1988]" 7. It is clear that what had been referred to therein is that if the credit of the duty paid on the inputs had already been taken for paying the duty on the final products in which such inputs had been used under any other rule or notification which rule or notification also provided for the benefit of credit, then no double benefit could be availed of by extending the benefit of the deemed credit in respect of the same input....