CCE, CHANDIGARH Vs. CEGAT, NEW DELHI & ANR.

JUDGEMENT

(1.) M /s. Upper India Steel Manufacturing and Engineering Company Limited, Dhandari Kalan, Ludhiana is engaged in the manufacture of steel ingots and iron and steel rolled products. It purchased scrap of iron and steel from the market. The assessee claimed deemed modvat credit on steel scrap purchased from the market. The claim of the assessee was rejected by the Collector. Feeling aggrieved it went up in appeal before the Tribunal and the question that arose for the consideration of the Tribunal was whether the purchases of steel and iron scrap were covered by bills/challans and whether those bills/challans had been produced before the authorities for claiming modvat benefit. This issue was decided by the Tribunal in paragraph 6 of its order dated 5.9.1997 which reads as under : -

(2.) THE department then moved an application before the Tribunal for referring the following question of law to this Court for its opinion : -

(3.) WE have heard counsel for the parties and perused the findings recorded by the Tribunal. We are satisfied that the question as claimed by the department does not arise out of the order of the Tribunal. The Tribunal has nowhere held that the onus of proving whether duty had been paid on inputs lies on the department or on the assessee. In fact, this issue did not arise before the Tribunal and the Tribunal found as a fact that the assessee had purchased scrap iron and steel from the market and produced the challans and bills for their verification before the department. In view of these findings, the present application is misconceived and the same stands dismissed.