2004 (3) TMI 265

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....missioner (Appeals) has reversed the order-in-original and allowed the deemed Modvat credit to the respondents of Rs. 5,525/-. 4. I have heard the learned JDR and gone through the record and the written submissions. The facts borne out from the record are that, the respondents availed deemed Modvat credit during the period 1-10-1998 to 31-3-1999 on the strength of invoices issued by M/s. Arun Steels, M/s. Dhiman Steel Rolling Mills, and M/s. Mahabir Steel Rolling Mills without furnishing proper proof regarding the discharge of appropriate duty by these manufacturers from whom the respondents have purchased the raw material through the invoices in question. They were accordingly served with a show cause notice for denial of the deemed Modva....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ity to be discharged under Rule 96ZP". But from this declaration it could hardly be interpreted and concluded that the duty liability has been discharged. Rather, plain reading of this declaration makes it evident that the manufacturer of the inputs had not discharged any duty so far in respect of the goods sold by him to the respondents. As per para 4 of the Notification No. 58/97-C.E., dated 30-8-1997, as amended, deemed credit is admissible only if the inputs had been received by the assessee under the invoice carrying declaration that appropriate duty had been discharged on such inputs under the provisions of Section 3A of the Act. There is a wide gap between the expression, 'duty has been discharged' as used in this notification and th....