- (1.) The instant appeal has been filed by the Department/Revenue under Section 35G of the Central Excise Act, 1944 challenging the order dated 24-8-2006 (Annexure P-3) passed by the Customs, Excise & Service Tax Appellate Tribunal, New Delhi by raising the following substantial questions of law :- "1. Whether the Tribunal is correct in holding that Commissioner (Appeals) has traversed beyond the show cause notice when the certificate required under Notification 58/97-C.E. (N.T.), dated 30-8-97 required duty payment and the same was not found discharged?
(2.) Whether the manufacturer of final products is entitled to deemed credit, under Notification 58/97-C.E., dated 30-8-97 when the manufacturer-supplier of inputs has not paid Central-Excise duty and given a wrong certificate on the body of invoices about duty discharged under Rule 96ZP of Central Excise Rules, 1944?" 2 The brief facts of the case are that the respondent M/s. Namdev Pipes Ltd., Nabha Road, Bhawanigarh is registered with the Central Excise Range, Sangrur under the Central Excise Act, 1944 (hereinafter referred to as the Act) and is manufacturing excisable goods, i.e., M.S. Pipes falling under chapter heading 7306.90 of the Central Excise Tariff Act, 1985 (5 of 1986). M/s. Flats/Bars are the principal raw material used by the respondent for the manufacture of M.S. conduit pipes. These inputs are purchased by them from the Hot Re-rolling Mills working under Section 3A of the Central Excise Act, 1944 . The respondent is availing deemed Modvat credit facility on inputs, i.e., M.S. Fiats/Bars under Notification No. 58/97-C.E. (N.T.), dated 30-8-97. However, the deemed Modvat credit is only admissible subject to certain conditions provided as under :- "The provisions of this Notification shall apply to only those inputs which have been received directly by the manufacturer of the final products from the factory of the manufacturer of the said inputs under the cover of an invoice declaring that the appropriate duty of excise has been paid on such inputs under the provisions of Section 3A of the said Act." Further proviso to sub-Rule (6) of Rule 57A of the Central Excise Rules, 1944 provides as under :- "Provided that the manufacturer shall take all reasonable steps to ensure that the inputs acquired by him are goods on which the appropriate duty of excise as indicated in the documents accompanying the goods has been paid under Section 3A of the Central Excise Act, 1944 ."
(3.) On scrutiny of RT-12 Returns & purchase invoices of M.S. Flats/Bars for the period from 10-9-98 to 31-12- 98 on which the respondent had availed deemed Modvat credit revealed that many of the invoices did not contain the requisite declaration at the time of clearance of said inputs by the manufacturer that appropriate duty has been paid on such inputs under Section 3A of the said Act and the few invoices contained that the duty is to be discharged under the said Rules.;