PODDAR PROJECTS LTD Vs. COLLECTOR OF C E

JUDGEMENT

(1.) THIS appeal is directed against the order of the Additional C1ollector of Central Excise, Hyderabad, dated 23.10.1987 disallowing the appellant Modvat credit for a sum of Rs. 52,388 availed by the appellant in terms of Rule 57G of the Central Excise Rules, 1944, the 'Rules' for short.

(2.) Shri Vaidyanathan, the learned Consultant for the appellant, submits that the issue arising for determination in the appeal is with reference to the availment of Modvat credit by the appellant in respect of steel scrap known as Skull scrap purchased by the appellant from M/s. Rourkela Steel Plant through M/s. Metal Scrap Trade Corporation Ltd. under 17 invoices for a quantity of 654.850 MT, which was lying on stock of the appellant as on 1.3.1986. It was urged that the credit is sought to be reversed under the impugned order on the ground that deemed credit would not be available in respect of duty paid inputs received on or before 31.1.1986 in terms of Rule 57H(2) of the Rules. The learned Consultant submitted that apart from the fact that Rule 57H(2) was not set out in the show cause notice, the very construction of the same by the adjudicating authority is also not legally tenable. It was contended that the goods in question, which had admittedly suffered duty, have been notified as goods and entitled to proforma credit under Rule 56A of the Rules and stand accepted under Rule 57H(2).

(3.) WE have considered the submissions made before us. The fact that the inputs in question referred to above had suffered duty is not disputed. WE are informed that the appellant has already filed Despatch Advice-cum-lnvoice, which is a duty paying document, in terms of Rule 52A and 173G of the Rules. Rule 57H(2) reads as under :