TaxTMI 
TaxTMI 
1999 (6) TMI 78
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....igible 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 were primarily form of steel and in respect of which the deemed Modvat credit was available in terms of Ministry's order dated 20-5-1988, referred to above. The Asst. Collector of Central Excise, Kanpur, observed that the assessee had failed to produce any evidence in respect of their inputs used in the manufacture of M.S. Flats that no credit had been availed of by them on such inputs. On appeal, the Collector of Central Excise (Appeals), Allahabad, observed that the appellants had not observed procedure as laid down under Rule 57-G of the Central Excise Rules, 1944 (hereinafter referred to as the `Rules') and, therefore, the benefit of the deemed Modvat credit could not be extended in their favour. He also mentioned that the assessee had not been able to put up evidence before the authorities below that they had not availed of the credit in respect of their i....
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....on-alloy steel, not further worked than hot-rolled, hot drawn or hot extruded but including those twisted after rolling angles, shapes and sections of iron or non-alloy steel (other than slotted angles and slotted channels); wire of non-alloy steel, stainless steel and other alloy steel (excluding electric resistance wire and electric resistance heating wire); rails, sleepers (cross-ties); cast articles of steel; flats exceeding 5 mm in thickness; ingot moulds of steel falling under 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 When Notification No. 90/88-C.E. was superceded by Notification No. 202/88-C.E., no mention was made of the flats in the description of the final products as given in the table annexed to that Notification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 ....
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.... Tariff were covered by the scheme of the deemed credit as laid down in the said Ministry's order dated 20-5-1988. The Asstt. Collector of Central Excise had denied the Modvat credit on the ground that "the party has failed to produce any evidence in respect of inputs used in the manufacture of M.S. flats that no credit has been availed by them on such inputs." The Collector of Central Excise (Appeals) has also observed that the appellants were not able to put up evidence before the authorities below that they had not availed of the credit already under any other notification granting such credit. The Ministry's order F. No. 342/1/88-TRU, dated 20-5-1988 is reproduced below : "1. Representations have been received from various manufacturers and their associations, manufacturing various final products specified in Notification No. 177/86-Central Excises, dated the 1st March, 1986, issued under Rule 57A of the Central Excise Rules, 1944 regarding grant of credit of excise duty paid on various ferrous and non-ferrous metals on a deemed basis. After considering the representations received in this regard and also taking into account the changes brought about by the Finance Act,....
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.... TABLE Sl. No. Description of inputs Heading No. sub-heading No. of the Schedule to the Central Excise Tariff Act, 1985 Rate of duty deemed to have been paid and may be allowed as credit (1) (2) (3) (4) 1. Iron 72.01, 7206.10 and 7207.10 Rs. 80 per tonne 2. Steel 7206.90, 7207.90, 72.18 and 72.24 Rs. 365 per tonne 3. Steel sheets of thickness not exceeding 5 mm 7208.29, 7209.20 and 7211.49 Rs. 365 per tonne 4. Refined copper & copper alloys, unwrought 74.13 Rs. 3300 per tonne 5. Copper waste and scrap 74.04 Rs. 3300 per tonne 6. Unwrought aluminium whether or not alloyed 76.01 Rs. 2700 per tonne 7. Aluminium waste and scrap 76.02 Rs. 2300 per tonne 8. Unwrought le....