CCE Vs. KAPOOR STEELS

JUDGEMENT

(1.) The assessee and revenue are both in appeal against the same Order -in -Appeal. Accordingly, they were heard together and are being disposed of under the common order.

(2.) The issue relates to claim of the appellant for deemed credit under Notification No. 58/97 -CE dated 30.8.97. The notification permits deemed credit at 12% of the invoice value provided the purchase of the input is directly from a manufacturer working under compound levy scheme (Section 3A of the Central Excise Act) and the invoice contained a declaration that "appropriate duty of excise has been paid" on such inputs". In the present case, the objection taken by the Revenue is that the declaration contained in the invoice is that "duty liability to be discharged under Rule 96ZP(3)" and it is being contended that this declaration does not satisfy the requirement of the notification that, appropriate duty has been discharged. The explanation of the appellant is that the working of the declaration is in view of peculiar circumstances. The suppliers were working under compounded levy scheme and were discharging duty also. However, there is some dispute between the revenue and the assessee as to the quantum of duty payable and that matter was pending before different authorities. However, there was no dispute at all that duty was to be paid under compounded levy scheme. It is the contention of the learned Counsel that declaration should be taken as satisfying the requirements of the notification. In this connection, he referred to the decision of the Hon'ble High Court of Punjab and Haryana at Chandigarh in the case of Vikas Pipe v. Commissioner of C. Ex. Chandigarh -II, 2005 (99) ECC 11 (P&H) : 2003 (158) ELT 680 (P&H). Specific reference was made to para 3 of the judgment which is reproduced below: - -

(3.) The revenue's appeal is on the ground that the assessee had not discharged the duty liability "as fixed by the Commissioner" and that the final order of the CEGAT No. A/718 -722/01 -NB(DB) in the case of Bhagwati Steel Industries has not attained finality and the department has filed reference application before the Hon'ble Punjab and Haryana High Court.