2008 (7) TMI 95

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....MT M/s. Essar Gujarat Limited gave a loan of 3314.159 MT of scrap to the respondent herein. On receipt of the said goods the respondent took credit of P.s. 27,83,198/- (Rupees Twenty-seven lakhs, eighty-three thousand and one hundred ninety-eight only) for the countervailing duty paid by M/s. Essar Gujarat Limited on 3314.159 MT of scrap. 3. For the sake of convenience we annexe hereinbelow the details of quantities imported by M/s. Essar Gujarat Limited and supplied to the respondent herein. Bill of Entry Number and Date Quantity covered by Bill of Entry Amount of countervailing duty paid Quantity supplied to the Respondent Modvat credit taken by the Respondent F-84/94-95 Dated 30-5-1994 1450.000 MT Rs. 12,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ut reduced the penalty/set aside the portion thereof. 7. The assessee preferred Central Excise Appeal No. 117/2004 in the Bombay High Court. The appeal stood allowed. Hence, this Civil Appeal is filed by the Department. 8. As can be seen from the Chart quoted hereinabove, the total consignment 4426.796 MT shredded scrap stood imported by M/s. Essar Gujarat Limited under three distinct Bills of Entry dated 30th May, 1994, 31st May, 1994 and 6th June, 1994. As regards the Bill of Entry dated 6th June, 1994 it may be mentioned that the Bill of Entry indicating payment of duty by the importer on the quantity, namely, 1325.296 MT was not produced. Only a Certificate at Page 42 of the Paper Book, as issued by the Superintendent, Central Exc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... inputs. ………………………………………" 10. On reading Rule 52A the position which emerges broadly is that the said Rule refers to eligibility for claiming MODVAT Credit, whereas Rule 57G refers to procedure to be observed by the manufacturer for taking credit for the duty paid on the inputs received by him. A bare reading of Rule 52A shows that no excisable goods shall be delivered from a factory or a warehouse except under an invoice signed by the owner of the factory or his authorised agent. Rule 52A, therefore, applies to a situation where goods are cleared from a factory or a warehouse to the place of assessee. For such a situation the proviso in Rule 57G stipulates that no credit shall be taken unless the inputs ....