9911796707
TMI Blog1996 (7) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... inal products. Proceedings were initiated against them by the Commissioner of Central Excise, Raipur by issue of show casue notice on 6-11-1991 directing them to show casue why an amount of Rs. 24,84,652.49 should not be demanded from them and penalty be not imposed on them for the following reasons : (1) Deemed credit of Rs. 3,08,322.50 on 486.535 MT of raw materials received under various names like "procesed scrap", "M.S. scrap", "re-rollable scrap" and "processed re-rollable scrap" was availed without declaring the same in the declaration filed under Rule 57G. (2) A credit of Rs. 1,02,904.83 on 163.340 MT of various inputs declared as burning loss has been availed which is liable to be denied in terms of Rule 57D. (3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inished product under Rule 57G declaration for Modvat purposes is governed by Rule 173B. However, a perusal of the records shows that in their classification list, effective from 20-3-1990 at Sl. No. 1, round bars of steel (as defined in the tariff description) has been included under Heading 72.14 CETA, 1985. This classification list is approved by the proper officer. Ribbed bars would fall under category of bars. These have also been included in their RT 12 returns. The appellants have mentioned ribbed bars as one of the final products and have also specified the inputs therefor in the Modvat declaration as required under Rule 57G. The Modvat facility is a self-contained scheme with procedural requirements designed to fulfil its purpose. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ior to inclusion of rejected rails in the Modvat declaration which was filed on 13-5-1991. The evidence also shows that the description of IOR rails was selectively changed to MS re-rollables, while it remained unchaged in other coduments like Sales Tax forms and appellants inward register. The Commissioner's order demaning duty on this quantity is, therefore, upheld. 7. The Commissioner has also held that credit of Rs. 1,02,904.83 on 163.340 MT of raw-material claimed as burning loss is not covered by provisions of Rule 57D of the Central Excise Rules which lays down that credit shall not be denied on the ground that part of the input on which credit is taken is contained in a waste, by-product or refuse. The Commissioner has observe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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