2016 (9) TMI 1133

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....el. Necessary entries were not made in RG-23A Part-I, since at the material time, the appellants were not aware as to whether deemed credit on the said goods were admissible. Circular No. MF (DR) 332/30/87-TRU Dated 2/11/1987 permitted the manufacturers to avail deemed credit at specified rates on various inputs lying in their stock on or after March 31, 1986. Subsequently, the appellants made necessary entries in RG-23A Part-II in May, 1991 and June, 1991. Department alleged that the appellant had wrongly availed Modvat Credit on the exempted goods and disallowed the same and accordingly confirmed the demand alongwith interest and imposed equal penalty in terms of Rule 173Q (I) (bb) of the Central Excise Rules, 1944. 2. The Ld. Advocate....

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....the notiification. He also relied on the following decisions: (i) CCE Vs. Balaji Alloys Casting Pvt. Ltd. -1994 (69) ELT 783 (T) (ii) Baroda Ferro Alloy Vs. CCE -2000 (123) ELT 707 (iii) CCE Vs. R.H. Industries -2006 (194) ELT (275) (P&H) (iv) CCE Vs. Khalsa Charan Singh Sons-2010 (255) ELT 379 (P&H) There was no misrepresentation of facts or suppression on the part of the appellants. 3. Ld. A.R. reiterated the Order-in-Original . He has relied on the decision in M.R.F. Ltd. Vs. Collector of Central Excise, Madras- 1996 (88) ELT 222 (Tribunal). 4. Heard both sides and perused the appeal records. We find that under the impugned order, the appellants have been denied the Modvat Credit in respect of....

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.... purposes of this notification, all stocks of aluminum and products thereof in the country except such stocks as are clearly recognizable as being non-duty paid shall be deemed to be aluminum and products thereof on which duty has already been paid.  [Notification No. 182/84-C.E., dated 1.8.1984 as amended by Notification No. 79/86-C.E., dated 10.02.1986.] "  Modification II: In the deemed credit order F. No. B. 22/5/86-TRU, dated 7-4-86, the items mentioned, include, among others, waste and scrap of copper falling under Heading No. 74.02, waste and scrap of aluminium falling under Heading No. 76.02, waste and scrap of lead falling under Heading No. 78.02, and waste and scrap of zinc falling under Heading No. 79.02,....

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.... wherein the Hon'ble High Court has decided the issue in favour of the assesse relying on the Apex Court's decision in the case of Collector Vs. Raghuvar ( India) Ltd. "7. In view of the principle laid down by the Apex Court in Raghuvar (India) Ltd. (supra) provisions of Section 11A of the Act is not attracted and cannot be imparted in respect of the Rules framed for availing of the Modvat, the same principle would apply for the purpose of Section 11B of the Act also. In view of the decision of the Apex Court in Raghuvar (India) Ltd. (supra) the law laid down by the Gujarat High Court in the case of Wipro Ltd. (supra) cannot be said to be a good law any more. We are, therefore, of the considered opinion that provisions of Section 1....