CCE Vs. SANDESH SPRINGS P. LTD.

JUDGEMENT

(1.) Revenue has filed this appeal against the Order -in -Appeal No. 684/2003 dated 3.11.2003 allowing the deemed Modvat Credit under Notification No. 58/97 to M/s. Sandesh Springs (P) Ltd. under Notification No. 58/97 -CE.

(2.) When the matter was called, no one was present on behalf of the respondents. In fact, the notice of hearing sent to them has been received back from the postal authorities with the remarks 'undelivered'. We, therefore, heard Shri H.C. Verma, learned DR and perused the records. The respondents manufacture leaf springs and other products out of M.S. bars supplied by M/s. Vashisht Ispat Products and M/s. Mahalakshmi Steel Rolling Mills and had taken deemed Modvat Credit under Notification No. 58/97 -CE. The Deputy Commissioner under Order -in -Original No. 31 -32/2000 dated 29.9.2000 disallowed the deemed Modvat Credit to them on the ground that the suppliers of M.S. bars had paid duty treating their furnace batch type and not in accordance with the capacity of production determined by the Commissioner. On appeal, filed by the respondents, the Commissioner (Appeals) has set aside the Order -in -original on the ground that the order passed by the Commissioner determining the annual capacity of production had been remanded by the appellate Tribunal for re -fixation of annual capacity of production which was still pending.

(3.) The revenue has contended that the benefit of Notification No. 58/97 is available only if the appropriate duty has been discharged by the supplier of the raw -material and as the issue regarding re -determination of capacity and consequently the quantum of duty to be paid by the supplier on the inputs is still pending, the respondents were not eligible to take the Modvat Credit