SHREE AMBICA STEEL INDUSTRIES Vs. CCE

JUDGEMENT

(1.) In the above captioned appeals which have been apreferred against the common order in appeal passed by the Commissioner (Appeals), the issue relates to the availability of deemed modvat credit to the appellants in terms of Notification No. 58/97 -CE.

(2.) We have heard both the sides. The appellants had availed deemed modvat credit as per Notification No. 58/97 of disputed amount during the period in question (May 1999 to September, 1999) on the strength of invoices issued by the manufacturers of inputs, containing declarations regarding the discharge of duty by them under Section 3 -A of the Act read with Rule 96 -ZP(3) of the Rules. The department has sought to deny the credit on the ground that the duty liability of the manufacturers/suppliers of the inputs named in the impugned order was subject matter of litigation at the time of clearance of goods and that they did not discharge the appropriate duty, which according to the department was payable by them and as such, the declaration did not satisfy the requirement of Notification No. 58/97 -CE. But we find that the department denied the modvat credit to the appellants on this very ground, earlier also, but Tribunal had allowed the same by rejecting this ground of the department, vide Final Order No. 755 -760/2004 -B dated 21.9.2004 by following the judgment of Punjab and Haryana High Court in the case of Vikas Pipe v. CCE, Chandigarh, 2003 (158) ELT 680. That decision of the Tribunal passed in appellant's own case earlier on similar facts and circumstances, and in our view, is binding on the Revenue and has to be followed in this case also. Therefore, the impugned order denying the deemed modvat credit to the appellants of the disputed amount cannot be sustained and the same is set aside. Consequently, the appeals of the appellants are allowed with consequential relief, if any, as per law.