TMI Blog1996 (2) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... ported with the items sent to the job workers for conversion into CRGO steel coils. The deemed modvat credit on M.S. Plates has been denied by the Department on the ground that the goods have been described as M.S. Plates in the challans covering the goods whereas deemed modvat credit is available only on sheets of less than 5 mm. thickness. The lower authorities also imposed a personal penalty of Rs. 12,000/- on the appellants. 2. The facts of the case, in brief, are that the appellants are engaged in the manufacture of transformers. They imported CRGO steel coils and paid the import duty thereon. They sent the CRGO steel coils to job workers and got back the cores of CRGO. The appellants took credit of Countervailing duty on pro rata ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antity of CRGO steel in coils on which modvat credit was taken was not more than CRGO steel in coils sent to job workers and therefore, the question of no correlation as held by the Department does not arise. He therefore, submitted disallowance of modvat credit amounting to Rs. 26,138.75 was not justified. 13. On the question of taking deemed modvat credit on the goods described as M.S. Plates, the learned counsel submitted that the supplier of these items had issued a certificate that the goods described as M.S. Plates, the thickness thereof was below 5 mm. He submitted that no doubt, the goods were wrongly described as M.S. Plates, they should have been described as M.S. Sheets. But in view of the thickness of the material, the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard the submissions of both sides. I find that CRGO steel in coils was imported by the appellants and CVD was paid on the CRGO coils. No evidence has been brought on record to show that CRGO coils were not utilised in the manufacture of cores CRGO by the job workers. No evidence has also been brought on record to prove that the quantity of CRGO coils on which credit of duty was taken was more than the quantity imported. I also observe that modvat credit of duty was not taken on the entire quantity of CRGO electrical steel in coils. I also observe that the appellants were issuing challans and in the challans there was specific mention that CRGO steel was being sent to the job workers and cores CRGO were being received. Having regard to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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