GANESH STEELS Vs. CUSTOMS EXCISE AND SERVICE TAX

JUDGEMENT

(1.) Whether Appellant is entitled to Deemed Credit under Notification No.01/93-Central Excise dated 28.02.1993 and Ministry's Order in TS/36/94-TRU dated 01.03.1994, even after the Appellant Unit crossed the value of clearances of Rs.75 lakhs is the issue falling for consideration in this appeal. The following substantial questions of law are raised in this appeal:-

(2.) Brief facts:- Appellant M/s.Ganesh Steels, Sankari are the manufacturer of re-rolling products falling under Chapter 72 and they availed MODVAT Credit for the inputs used in the manufacture of final products under Rule 57-A of erstwhile Central Excise Rules, 1944. Appellant also availed deemed credit at the rate of Rs.920/- per M.T. on the ingots and re-rollable materials of iron and steel purchased from outside. As per Board's letter F.No.TS/36/94 dated 01.03.1994, the re-rollers availing the exemption under Notification No.1/93-CE dated 28.2.1993 were eligible for availing the Deemed Credit on the inputs.

(3.) As the Appellant crossed the clearance value of Rs.75 lakhs on 21.09.94, they were not eligible for availing the Deemed Credit, a show cause notice dated 13.6.1995 was issued to the Appellant calling them to show cause as to why the Deemed Credit of Rs.5,00,403/- availed by them during the period from 1st January, 1995 to 31st March, 1995 should not be denied and recovered under Rule 57 (1) of Central Excise Rules, if they have utilised already and why a penalty should not be imposed on them under Rule 173Q of Central Excise Rules. Appellant had sent its reply on 03.07.1995 stating that they were the manufacturers of re-rolled products of iron and steel which are falling under Chapter 72 and that they are Small Scale Unit availing exemption under Notification No.1/93-CE dated 28.02.1993 and that they have fulfilled all the conditions stipulated in the Board's order and as per the Board's Order No.TS/36/94/TRU dated 01.03.1994, Deemed Credit would be available to all those Units availing the exemption under Notification dated 28.2.1993 irrespective of whether the value of their clearance has exceeded the limit of Rs.75 lakhs or not and requested the authority for dropping the case.