AI Drafter 
TaxTMI 
TaxTMI 
2015 (8) TMI 199
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....el falling under Chapter 72 of the Central Excise Tariff Act, 1985. These bars and rods of mild steel are manufactured from rollable and re-rollable old and discarded rails, wheels, fish plates, etc. The aforesaid raw materials/inputs are purchased by the appellant from Railway authorities in the auction held by the Railways, without melting the same and are duly registered with the Central Excise Department. The appellant is also registered under the Central Excise Act. While removing the bars and rods of mild steel from its factory premises after its manufacture, at the time of sale, the appellant faced excise duty thereupon. However, the appellant wants MODVAT credit of the duty which was already paid by the Railways on the rods, wheels,....
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....ration under sub-rule (1) may, after obtaining the acknowledgment aforesaid, take credit of the duty paid on the inputs received by him: Provided that no credit shall be taken unless the inputs are received in the factory under the cover of a Gate Pass, an A.R.1, a Bill of Entry or any other document as may be prescribed by the Central Board of Excise and Customs [constituted under the Central Boards of Revenue Act, 1963 (54 of 1963)] in this behalf evidencing the payment of duty on such inputs:] Provided further that having regard to the period that has elapsed since the duty of excise was imposed on any inputs, the position of demand and supply of the said inputs in the country and any other relevant considerations, the Central Gove....
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.... imposed on any inputs, it is deemed that the duty was paid thereupon and credit of the duty in respect of the said inputs can be allowed at such rate and subject to such conditions as the Central Government may direct, without production of documents evidencing the payment of duty. It is in exercise of this power contained under the aforesaid proviso, that notification dated 13.07.1992 was issued on the subject of "Modvat-Deemed credit in respect of re-rollable material (Chapters 72 & 73)". As per this notification, in respect of ingots and re-rollable materials of iron or steel purchased from outside and lying in stock on or after the 07th day of July, 1992 with the re-rollers may be deemed to have paid duty at the rate of Rs. 920/- pe....
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.... the adjudicating authority that there was no melting of the aforesaid inputs while manufacturing the bars and rods of the iron and steel. The adjudicating authority also recorded a finding that the goods in question which were purchased by the appellant as scrap from the Railways and became inputs for it to manufacture its own goods were not dutiable. Further no evidence was produced by the Revenue to the effect that they were exempt from the excise duty when purchased by the Railways originally. The adjudicating authority remarked that once the goods were dutiable, there was a presumption that duty was paid unless the Department is able to show that the Railways was exempt from payment of excise duty. In support of this legal proposition,....
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....material from the Railways. On the contrary, the appellant was claiming MODVAT credit on deemed basis, viz., the excise duty that was paid by the Railways at the time of purchase of the said material which was sold as scrap to the appellant herein. This claim, as already pointed out above, was attracted on the basis of the aforesaid two notifications dated 13.07.1992 and 01.03.1994 coupled with Rule 57G(2) of the Rules. That aspect, we find, has not even been touched upon or dealt with by the Commissioner. Same error, we find, is in the order of the Customs, Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as 'CEGAT') where appeal was preferred by the appellant against the order of the Commissioner and the CEGAT....