Customs, Excise and Gold Tribunal - Delhi
Geeta Steel Rolling Mills vs Collector Of Central Excise on 31 May, 1994
Equivalent citations: 1995ECR276(TRI.-DELHI), 1994(73)ELT55(TRI-DEL)
ORDER P.C. Jain, Member (T)
1. When the matter was called none has appeared on behalf of the applicants. There is, however, request from the ld. Advocate Shri Bipin Garg that the matter may be decided on merits since it ' is already covered by Tribunal's Order Nos. E/86 to 95/94-B1 and Final Order No. E/135 to 144/94-B1, dt. 3-3-1994. Ld. PR Shri K.K. Dutta fairly concedes the aforesaid position. We also notice that the impugned order has already been set aside in the case of another parry M/s. Bharat Steel Rolling Mills vide Tribunal's Stay Order No. E/145/94-B1 and Final Order No. E/246/94-B1, dt. 29-4-1994 in Appeal No. E/506/94-B1. We allow the stay petition unconditionally and allow the appeal in the following terms as stated in order dt. 29-4-1994 (supra).
"We have carefully considered the pleas advanced from both the sides. We are not impressed by the pleas raised by the ld. Advocate that they were eligible to use ingots for manufacture of bars and rods when the particular inputs was . only rerollable material. Plea of omission on the part of Central Government cannot be taken at its face value, in the absence of any clear words to that effect. We, therefore, hold that duty liability for the period 1-3-1992 to 9-3-1992 in respect of bars and rods manufactured out of duty paid ingots has been correctly imposed upon the various applicants by the Revenue.
However, we find sufficient force in the second plea of the ld. Advocate. There is no dispute that ingots and bars and rods are specified in Notification No. 177/86 issued under Rule 57A of the Central Excise Rules, 1944. Therefore, MODVAT credit of duty paid on ingots used in the manufacture of bars and rods would be available to the various applicants. Mere fact that the applicants could not file a declaration on the ground of their plea that they were entitled to Notification 202/88 cannot deprive the applicants /appellants benefit of MODVAT credit. Accordingly, we allow the stay petitions unconditionally. In the facts and circumstances, we remand the matters to the adjudicating authority to allow the MODVAT credit and adjust the payment of duty now demanded from them against such MODVAT credit admissible to them after verifying the duty paid character of ingots (inputs) in accordance with law. Appeals are thus allowed by remand in the light of the aforesaid directions".
2. Appeal is allowed in the above terms. Dictated and pronounced in open Court.