STEEL INGOTS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) BY this petition filed under Article 226/227 of the Constitution of India the petitioner seeks quashment of show-cause notice dated 28. 6. 1993 (Annexure P2) issued by the respondent No. 2 disallowing Modvat Credit on the items like Refractory Bricks, Mortar, Nozolex, Ramming Mass etc.

(2.) THE petitioner is a Company incorporated under the Companies Act, 1956 and manufactures steel ingot/c. C. billets falling under Chapter 72 of the Central Excise Tariff Act, 1985. According to the petitioner in the process of manufacturing refractory bricks, mortar, nozolex, ramming mass etc. , are used and which are consumable items for which the petitioner is entitled to modvat credit. The respondent No. 2 has, however, issued the show-cause notice (Annexure P2) asking the petitioner to show-cause as to why modvat credit taken by the petitioner to the tune of Rs. 2,03,737. 24 should not be disallowed and recovered from him under the provisions of Rule 57-1 of the C. E. Rules, 1944. It is this notice (Annexure P2) which is impugned in this petition.

(3.) I have heard counsel for the parties.