Bharat Steel and Forging Vs. Cce - Court Judgment

Excerpt:
1. after dispensing with the condition of predeposit of duty and penalty, we take up the appeal itself with the consent of both sides, as the issue involved in this case, lies in a narrow compass.2. the benefit of modvat credit on deemed basis to the tune of rs. 31,146.00 (rupees thirty-one thousand one hundred and forty-six) was claimed by the appellants in respect of ms slabs (cobbles) purchased from the market in terms of government of india's order no.342/1/88/tru dated 12.7.1990. the appellants were issued a show cause notice proposing reversal of the credit on the ground that ms slabs are considered as waste and scrap in the trade parlance and the board's order does not extend the benefit of credit to waste and scrap in question. during adjudication, the appellants contended that the goods are ms slabs (cobbles) classifiable under heading 7207.90 and cannot be considered as waste and scrap. the adjudicating authority did not accept the above contention of the appellants and confirmed the demand of duty as proposed in the notice and imposed personal penalty of rs. 2,000.00 (rupees two thousand). the said order was confirmed by the commissioner (appeals). hence the present appeal.3. we have heard shri b.n. chattopadhyay, learned consultant for the appellants and shri t.k. kar, learned sdr for the revenue.4. the short issue involved in the present appeal is as to whether ms slabs (cobbles) are covered by the government of india's order on deemed credit. the revenue's contention is that the said goods are waste and scrap and as such the deemed modvat credit is not available to them. we find from the allegation made in the show cause notice as also the observations made by the appellate authority that in the trade parlance the item in question has been recognised as waste and scrap.however, we note that apart from making the above submission, the revenue has not substantiated the same by production of any evidence to that effect. on the other hand, we find that the invoices clearly described the goods as ms slabs (cobbles). this fact itself, shows that the goods are not waste and scrap. in the absence of any contra-evidence on record, we hold that the appellants are entitled to the deemed credit in respect of the goods in question. the impugned orders are accordingly set aside and the appeal is allowed with consequential relief to the appellants.

Judgment:
1. After dispensing with the condition of predeposit of duty and penalty, we take up the appeal itself with the consent of both sides, as the issue involved in this case, lies in a narrow compass.

2. The benefit of MODVAT Credit on deemed basis to the tune of Rs. 31,146.00 (Rupees thirty-one thousand one hundred and forty-six) was claimed by the appellants in respect of MS Slabs (Cobbles) purchased from the market in terms of Government of India's Order No.342/1/88/TRU dated 12.7.1990. The appellants were issued a show cause notice proposing reversal of the credit on the ground that MS Slabs are considered as waste and scrap in the Trade Parlance and the Board's Order does not extend the benefit of credit to waste and scrap in question. During adjudication, the appellants contended that the goods are MS Slabs (Cobbles) classifiable under heading 7207.90 and cannot be considered as waste and scrap. The adjudicating authority did not accept the above contention of the appellants and confirmed the demand of duty as proposed in the notice and imposed personal penalty of Rs. 2,000.00 (Rupees two thousand). The said Order was confirmed by the Commissioner (Appeals). Hence the present appeal.

3. We have heard Shri B.N. Chattopadhyay, learned Consultant for the appellants and Shri T.K. Kar, learned SDR for the Revenue.

4. The short issue involved in the present appeal is as to whether MS Slabs (Cobbles) are covered by the Government of India's Order on deemed credit. The Revenue's contention is that the said goods are waste and scrap and as such the deemed MODVAT Credit is not available to them. We find from the allegation made in the show cause notice as also the observations made by the appellate authority that in the Trade Parlance the item in question has been recognised as waste and scrap.

However, we note that apart from making the above submission, the Revenue has not substantiated the same by production of any evidence to that effect. On the other hand, we find that the invoices clearly described the goods as MS Slabs (Cobbles). This fact itself, shows that the goods are not waste and scrap. In the absence of any contra-evidence on record, we hold that the appellants are entitled to the deemed credit in respect of the goods in question. The impugned Orders are accordingly set aside and the appeal is allowed with consequential relief to the appellants.