TMI Blog2001 (9) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 1,25,000/- and Rs. 50,000/- on them. 2. The facts leading to the filing of the present appeal may briefly be stated as under : 3. The appellants were engaged in the manufacture of MS Black Pipes and MS Galvanised Pipes. They availed Modvat credit on the purchased MS pipes and galvanised pipes under Rule 57A of the Rules. They were served with two show cause notices vide which they were called upon to show cause as to why the amount of Modvat credit of Rs. 12,64,912/- and Rs. 4,88,636/- be not recovered from them and penalty be also not imposed on them on the ground that they were not entitled to avail the same legally. In defence, to those show cause notices, the appellants averred that they were not carrying out any manufacturin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t credit. 8. On the other hand, learned SDR has reiterated the correctness of the impugned order and contended that the appellants are not entitled to claim Modvat credit on the MS pipes and MS galvanised pipes under Rule 57A or Rules 12 and 13 of the Rules as the same were not used by them as inputs in or in relation to the manufacture of the final products. 9. The facts are not much in dispute. The appellants purchased MS pipes and MS galvanised pipes from market and subsequently cleared the same from the factory premises without being subjected to any process of manufacture as defined under Section 2(f) of the Act. Even the learned Counsel has not disputed before us that the activity of the appellants conducting some processes like h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pipes as their final products after purchasing from the market and after carrying out certain minor processes referred to above. They could not be even treated as a deemed manufacturer of the final products by a legal fiction. They were only after purchasing the pipes from the market, firstly bringing the same to the factory and later on, after carrying out some small processes in respect thereof, clearing/exporting those very pipes. 6. The learned Commissioner has given detailed reasons for affirming the Order-in-Original of the Assistant Commissioner disallowing the Modvat credit to the appellants. The non-applicability of the provisions of Rule 57A, Rules 12 and 13 read with Explanation appended thereto, had been discussed in detail by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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