TMI Blog2003 (2) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... om levy of excise duty. Further, appellant was entitled to get benefit of MODVAT scheme, therefore, there was no justifiable reason for the appellant to suppress any fact. In the result, the appeals are partly allowed. The matters are remitted to the Adjudicating Authority to modify the demand by confining it to the period of six months prior to issue of show cause notice and pass consequential orders. - 5941-5942 of 1999 - - - Dated:- 26-2-2003 - M.B. Shah and D.M. Dharmadhikari, JJ. [Judgment per : M.B. Shah, J.]. - It is apparent that in taxation matters, amendments, clarifications, exemption notifications or their withdrawal play an important role in increasing litigation. Repeatedly, it is stated that law and procedure t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ingots purchased from refiners. (4) Ingots received from job workers to whom waste scrap of lead was sent without payment of duty to convert them into lead ingots. 4.For the purchase of ingots from first and second source, there is no dispute. With regard to the third source, namely, ingots purchased from refineries, it is exempted under Notification 37/81-C.E. The relevant part of the said notification which is quoted by the Tribunal is as under :- The Central Government hereby exempts lead unwrought falling under heading No. 78.01 of the Schedule to the Central Excise Tariff Act 1985 (5 of 1986), if such lead unwrought is produced out of one or more of the following materials, from the whole of the duty of excise leviab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured or produced in India. Explanation :- For the purpose of this notification all stocks of lead and products thereof in the country, except such stocks as are clearly recognisable as being non-duty-paid, shall be deemed to be lead and products thereof on which the duty has already been paid. 6.Further, by notification 246/87-C.E., dated 2-11-1987, 2nd proviso to the notification 186/84-C.E. (as amended) was added immediately before the existing Explanation. Said proviso is also reproduced below :- Provided further that the exemption contained in this notification shall apply only if :- No credit has been taken on the input from which such scrap has been generated under rule 57A of the Central Excise Rules, 1944; or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, even if any duty is paid/payable on the scrap, the same is available as MODVAT credit to the appellant. Thus the exercise of payment of excise duty was entirely revenue neutral. 10.From the facts stated above, particularly the fact that entire movement of waste and scrap to the job workers and receipt of ingots manufactured by the job workers is recorded in regular books of accounts and proper documentation is maintained in form of delivery challan and that there was no reason for the appellant to suppress as it was entitled to have facility of MODVAT Scheme, it would be difficult to hold that there was any wilful suppression on the part of the appellant which would empower the authorities to invoke extended period of limitation unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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