STEELCAST LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, BHAVNAGAR

JUDGEMENT

(1.) THE Modvat credit stands denied to the appellant on the ground that they have availed the actual credit of duty paid on the inputs i.e. scrap obtained from breaking of imported ships in terms of Notification No. 177/86 -C.E. dt. 1 -3 -1986, amended from time to time, they were entitled to avail the credit only to the extent of Rs. 500/ - or Rs. 630/ - or Rs. 660/ -.

(2.) DURING the course of adjudication before the lower authorities, the appellants relied upon Trade Notice No. 38/99 dt. 5 -8 -1992 (sic) issued by Commissioner of Central Excise, Chandigarh on the ground that the scrap obtained by breaking of imported ships would not be covered by the restriction clause in the above Notification. As such, they contented that the Revenue being bound by the said circular, is required to extend the benefit to the assessee.

(3.) COMMISSIONER (Appeals) however held that the Trade Notice cannot be relied upon by the assessee inasmuch as the Tribunal in its judgment in the case of M/s. Sardar Steel Mills [2002 (147) E.L.T. 518 (Tri.)] has held that the restriction will apply in case of scrap obtained from Indian as well as imported ships. Accordingly, he confirmed the demand against the appellant.