COMMISSIONER OF CENTRAL EXCISE Vs. RAJSHEELA STEEL INDUSTRIES

JUDGEMENT

(1.) We have heard Mr.Y.N.Ravani, learned counsel for the appellant.

(2.) This appeal was admitted in terms of the following substantial question.

(3.) The brief facts are that the respondent assessee has availed deemed credit on Iron and Steel Re -rollable materials @ Rs.920 PMT, but the said facility pertains to re -rollers who were availing the benefit of Notification No.1/93 -CE dated 28.02.1993 upto the exemption limit of Rs.75 lakhs only. So the deemed credit so availed after crossing the exemption limit was illegal and is thus liable to be recovered. The show cause notices were therefore issued to the assessee for recovery of the total amount of Rs.1,70,255/ -. The assessee in their defence invited the attention to Order No.TS/36/94 -TRU dated 1.3.1994 issued by the Ministry of Finance, Department of Revenue, Government of India wherein, it was indicated that Ingots and Re - rollable materials of Iron and Steel purchased from outside lying in stock on or after 1.4.1994 with the Re -rollers, who had been availing of exemption under Notification No.1/93 -CE dated 28.2.1993 will be deemed to have paid duty and the credit of duty under Rule 57A would be allowed @ Rs.920 PMT without production of documents evidencing the payment of duty. Further, they stated that the benefit of deemed credit was available so long as the manufacturer avails of the exemption under Notification No.1/93 -CE dated 28.2.1993 and so they have availed deemed credit correctly. The Assistant Commissioner held that the benefit of deemed credit to the assessee is actually availing concessional slab rate under Notification dated 28.2.1993 and demand against the assessee was dropped.