Jawahar Lal Gupta, J. - (1.) THE learned Single Judge disposed of 17 writ petitions by one order. 11 appeals viz. LPA Nos. 749, 940, 992 to 998,1038 of 1990 and 424 of 1991 arising out of the judgment and four writ petitions viz. C.W.P. Nos. 4874 and 5167 of 1988, 9050 and 11683 of 1990 involving identical points have come up for hearing before us. These can be disposed of by one judgment. A few facts as evident from L.P. A. No. 749 of 1990 may be briefly noticed.
(2.) THE appellants as well as the petitioners are manufacturers of steel ingots, steel billets, steel bars, rounds and rods and steel flats etc. It is averred that these products are manufactured "by using raw material which is primarily waste and scrap of steel/iron." Under Section 3 of the Central Excises and Salt Act, 1944 (hereinafter referred to as 'the Act') excise duty is leviable on all excisable goods which are produced or manufactured. The rate of duty has been specified in the Schedule to the Central Excise Tariff Act, 1985 (as amended by the Finance Bill, 1986). Chapter 72 of the Schedule deals with iron and steel. In the Finance Bill, 1986, a Scheme called 'MODVAT' (Modified Value Added Tax) was introduced "by which duty once paid on a component or raw material could be set -off for purposes of duty on the final product." In order to effectively implement the Scheme, Rules 57A to 57J were promulgated and added to the Central Excise Rules, 1944 (hereinafter called 'the Rules'). Under Rule 57A the Central Government was empowered to notify the inputs as well as the final products which were to qualify for credit of the excise duty "paid on the goods used in or in relation to the manufacture of the said final products...". In exercise of this power, the Central Government issued a notification on March 1,1986, a copy of which has been produced as Annexure P. 6 with the writ petition. The notification inter alia specified Chapter 72 in the list of inputs as well as that of the final products which qualified for benefits under the MODVAT Scheme. Rule 57G laid down the procedure which had to be followed by the manufacturer.
(3.) IN exercise of the power conferred under the proviso to Rule 57G(2) the Central Government issued an order on April 7,1986, a copy of which has been produced as Annexure P. 3. According to this notification, the inputs specified in column 2 "purchased from outside and lying in stock on or after 1 -3 -1986 with the manufacturer for the manufacture of final products specified in the Notification No. 177/86 -C.E. dated the 1st March, 1986 may be deemed to have paid the specified duty in column 4 of the said notification..." without production of documents evidencing payment of duty subject to three conditions which had been laid down therein. It may be mentioned that in the table appended to this order, it was inter alia provided that if the manufacturer uses "Iron and articles thereof" he will be deemed to have paid duty and could claim credit @ Rs. 80.00 per tonne. In case "steel and articles thereof" were used as inputs, the rate of duty deemed to have been paid which could be allowed as credit was Rs. 365.00 per tonne. In case of "steel and articles thereof mentioned at Item No. 73.04 and 73.07 in the Schedule to the Central Excise Tariff Act, 1985, the said rate was specified as Rs. 220.00 per tonne. The appellants filed the necessary declarations. Copies of these declarations have been appended as Annexure P. 5 (A to C) in the instant appeal. It appears that the appellants in L.P.A. No. 749 of 1990 claimed credit for an amount of more than Rs. 45.00 lacs for the period from March 1,1986 to August 28,1986.;