KHOSLA CAST STEEL AND ALLOYS PVT LTD Vs. COLLECTOR OF C EX

JUDGEMENT

(1.) THIS is an appeal directed against the order-in-appeal bearing No. V-2(Ch-72) 2019/88 (R-130/NG-18/89), dated 27-2-1989 passed by the Collector of Central Excise (Appeals), Bombay.

(2.) Brief facts necessary for the disposal of this appeal can be stated as below:

(3.) SHRI H.S. Joshi, the learned advocate, appearing on behalf of the appellants, contended that they are not claiming MOD VAT credit in respect of steel scrap during the period from 15-3-1986 to 22-5-1986. Only after they had filed the letter dated 22-5-1986 mentioning clearly that they are brining in steel scrap and would be availing of deemed credit, they have claimed MOD VAT credit in the months of September and October, 1987, when they came to receive such steel scrap directly from the manufacturers evidencing payment of duty. Hence on a rigid and narrow view taken by the authorities that letter dated 22-5-1986 is not a proper declaration for refusing credit is not justifiable. He also contended that the demand has been issued under Rule 571 by the Supdt., whereas it should have been issued by the Assistant Collector. He also contended that the demand is time barred, in respect of the credit taken during the month of September 1987, since the show cause notice was issued only on 31-3-1988. He, therefore, pleaded that the order of the authorities below is not at all justified, since they have clearly intimated the input, namely steel scrap, which was to be brought by them under the MOD VAT scheme.