ORDER :

S.H. Kapadia, J.

Leave granted. In November 1994 M/s. Essar Gujarat Limited imported three consignments, in all, amounting to 4426.796 MT of shredded scrap and cleared the same under three bills of entry on payment of duty. Out of the said 4426.796 MT M/s. Essar Gujarat Limited gave a loan of 3314.159 MT of scrap to the respondent herein. On receipt of the said goods the respondent took credit of Rs. 27,83,198 (Rupees twenty-seven lakhs, eighty-three thousand and one hundred ninety-eight only) for the countervailing duty paid by M/s. Essar Gujarat Limited on 3314.159 MT of scrap.

2. For the sake of convenience we annexe hereinbelow the details of quantities imported by M/s. Essar Gujarat Limited and supplied to the respondent herein.

Bill of entry Number and date Quantity covered by bill of entry Amount of countervailing duty paid Quantity supplied to the respondent MODVAT credit taken by the respondent

F-84/94-95 dated 30-5-1994 1450.000 MT Rs. 12,17,696 1450.000 MT Rs. 12,17,696

F-90/94-95 dated 31-5-1994 1651.500 MT Rs. 13,86,914 1651.500 MT Rs 13,86,914

F-93/94-95 dated 6-6-1994 1325.296 MT 212.659 MT Rs 1,78,588

4426.796 MT 3314.159 MT Rs. 27,83,198

3. On 23-11-1995, a show-