CCE Vs. KALSI STEEL

JUDGEMENT

(1.) Revenue filed this reference application for referring the following question of law to the Hon'ble High Court for their valuable opinion:

(2.) The contention of the revenue is that the deemed credit order specifically provides that the deemed credit is available to re -rollers availing the exemption under Notification No, 1 /93 -CE and when the manufacturer crosses the exemption limit, as provided under Notification No. 1/93, he was no more working under the said notification, hence is not entitled for the benefit of deemed credit order dated 1.3.94.

(3.) Notification No. 1 /93 -CE dated 28.2.93 provides concessional rate of duty upto the clearance of Rs. 75,000 (sic) and beyond the clearance of Rs. 75,000 (sic), no manufacturer can avail the exemption under Notification No. 1/93. The deemed credit order dated 1.3.94 issued under Rule 57G(2) of the Rules, provides that ingots and re -rollable material of iron and steel purchased from outside and was lying in stock on or before 1st day of April 94 with the re -rollers availing the benefit of exemption Notification 1/93 -CE dated 28.2.93 will be deemed to have paid duty, It, further, provides that Modvat credit in respect of such ingots and re -rollable material used without undergoing the process of melting in the manufacture of goods fall under Chapter 72 or 73 of Central Excise Tariff was allowable @Rs. 920/MT. without the production of document evidencing the payment of duty.