ANKUR STEELS KUROULI Vs. CEGAT

JUDGEMENT

(1.) This is a reference under Section 35G(3) of the Central Excise and Salt Act, 1944 in which the following questions have been referred to us for our opinion:

(2.) Heard learned Counsel for the parties Shri A.P. Mathur for the assessee and Shri S.P. Kesharwani for the department.

(3.) In the manufacture of M.S. Bars and Rods falling under Chapter 72 of the Schedule to the Central Excise Tariff Act, 1985 the assessee is using re-rollable materials of Mild Steel in the manufacture of the final product. The assessee availed the benefit of deemed credit order dated 17.7.1992, but thereafter a show cause notice was issued by the Central Excise Department seeking to recover the amount, of deemed credit on the ground that the re-rollable materials on which credit has been taken was not clearly recognizable as duty paid.