2001 (10) TMI 209

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....stice K.K. Usha, President].- The issue raised in this appeal relates to interpretation of Clause (2) of Notification No. 5/94-C.E. dated 1-3-94 issued under Rule 57A of Central Excise Rules, 1944. It is the contention of the appellant that the restriction imposed under the above clause in the matter or taking Modvat credit is applicable only when the ships, boats and other floating structure refe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....titled for the full credit in view of provisions contained under Notification No. 5/94. It is alleged that the credit is restricted to the extent of Rs. 920/- per M.T. Appellant was also directed to show cause as to why the penalty u/s 173Q should not be imposed on it. No reply was given by the appellant to the above show cause notice. By order dated 25-1-96, the Assistant Commissioner, Central Ex....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....No. 5/94 would be applicable only to scrap obtained from the ships etc. which are manufactured in India. The appellant has placed reliance on the decision of the Tribunal in the case of M/s. Atam Concast Steel (P) Ltd. v. CCE Chandigarh, 1996 (81) E.L.T. 232. The learned DR submitted that the above contention in respect of inputs falling under chapter heading 72.30 & 73.27 would make it clear that....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nputs' in the first portion of Clause (2) and not to ships, boats and other structure. Clause (2) reads as follows: "(2) the credit of specified duty paid in respect of inputs, namely; the goods falling under heading Nos. 72.30 and 73.27 and obtained from breaking up of ships, boats and other floating structure as are manufactured in India and used in the manufacture of final products in any pl....