GEM CABLES AND CONDUCTORS LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is directed against the order of the Collector of Central Excise, Hyderabad dated 18.3.1987 directing the appellant herein under Rule 57-I of the Central Excise Rules, 1944 (hereinafter referred to ait 'the Rules') to reverse the credit in a sum of Rs. 2,29,034/- on the ground that the credit in regard to the same had been wrongly availed of. The appellant availed deemed credit in respect of aluminium wire rods for the period 24.2.1986 to 1.3.1986 with the permission of the Department. The appellant's claim that they purchased aluminium rods from M/s. Sri Metal Trading Corporation, Bombay, importers of unwrought aluminium find took credit on the duty suffered by the ingot under the Modvat scheme. Proceedings were instituted against the appellant by issue of a show cause notice dated 22.8.1986 which culminated in the impugned order appealed against under which the appellant had been found to have availed erroneously Modvat credit amounting to Rs. 2,29,034/- and the same was directed to be recovered in terms of Rule S7-I of the Rules.

(2.) Shri K. Narayanan, the earned Counsel for the appellant at the outset submitted that he does not want to put forth any pleas on facts and assaiiled the impugned order on grounds of law and contended inter alia

(3.) IN reply Shri Narayanan, the earned Counsel submitted that if the quantum is worked out, it would be seen that the authority granted permission to the appellant to avail Modvat credit in respect of unwrought aluminium in any form.