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2015 (8) TMI 199 - SC - Central ExciseCenvat / MODVAT Credit - Duty paying documents - Duty paid by Railway - only reason for denying the MODVAT credit is that the purchase bills of scrap from Railways in auction do not indicate the rate and amount of duty paid on the scrap/inputs at the time of clearance/sale by the Railways - whether the appellant is entitled to claim the credit of the said duty paid by the Railways - Held that:- Appellant was claiming MODVAT credit on deemed basis, viz., the excise duty that was paid by the Railways at the time of purchase of the said material which was sold as scrap to the appellant herein. This claim, was attracted on the basis of the aforesaid two notifications dated 13.07.1992 and 01.03.1994 coupled with Rule 57G(2) of the Rules. That aspect, we find, has not even been touched upon or dealt with by the Commissioner. Same error, we find, is in the order of the Customs, Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as 'CEGAT') where appeal was preferred by the appellant against the order of the Commissioner and the CEGAT also dismissed the appeal observing that the appellant had not paid any duty at the time of purchase of the material from the Railways. The High Court vide the impugned judgment has dismissed the appeal of the appellant and while doing so, it has again fell into the same error as was committed by the CEGAT or the Commissioner, viz., denying the deemed MODVAT credit to the appellant on the ground that the appellant had not paid duty on the unserviceable raw material - appellant satisfies all the eligibility conditions contained in notifications dated 13.07.1992 and 01.03.1994 for availing the deemed MODVAT credit - Decided in favour of assessee.
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