P.K. Kapoor, Member (T)

1. These appeals arise out of the orders passed by the Collector of Central Excise (Appeals), New Delhi. Since identical issues are involved in these cases, both the appeals are disposed of by this common order.

2. The appellants are engaged in the manufacture of Cement Spun Pipes and Collars falling under sub-heading 68.07 of the Schedule to the Central Excise Tariff. The Appellants were availing deemed MOD VAT credit on re-rollable material obtained by them from the market in terms of Order No. 347/1/88-TRU, dated 1-6-1987 issued by the Ministry of Finance under Rule 57G(2). The re-rollable material after being subjected to rolling process was drawn into wire in the appellants factory for being used along with cement concrete mixture for the production of cement spun pipes. In the impugned order dated 30-4-1991 the Collector (Appeals) held that deemed credit on re-rollable materials received by the appellants was not admissible in terms of Rule 57D(2) since 'wire' drawn out of such material was in itself a final product and could not be deemed to have come into existence as an intermediate product during the course of the manufacture of cement spun pipes.

3. On behalf of the appellants we heard the learned consultant Shri P.S. Bedi. He stated that in the declaration filed under Rule 57G the appellants had stated that the re-rollable material received by them would be used as input for the manufacture of spun pipes falling under sub-heading 68.07 of the Schedule to Central Excise Tariff Act, 1985. He added that in terms of Order No. F. 347/1/88-TRU, dated 1-6-1989 issued by the Ministry of Finance under Rule 57G(2) deemed credit on re-rollable material was admissible. He added that even though wire produced from the rollable materials received by the appellants was exempted from duty in terms of Notification No. 217/86, dated 2-4-1986 (as amended), deemed credit could be availed by the appellants in terms of Rule 57D(2) in respect of the re-rollable material since wire was an intermediate product which comes into existence during the course of manufacture of cement spun pipes.

4. On behalf of the Revenue the learned SDR Shri G. Bhushan referred to the Order F. No. 347/1/88-TRU, dated 1-6-1989 issued by the Ministry of Finance under the second proviso to Rule 57G(2) and staled that credit of duty on re-rollable material received by a manufacturer could be availed provided it is used in the manufacture of any final product falling under Chapters 72 & 73 of the Schedule to the Central Excise Tariff Act, 1985. He contended that the appellants final product being cement spun pipes falling under sub-heading 68.07 of the Tariff the concession in terms of the order dated 1-6-1989 issued by the Ministry of Finance was not admissible to them.

5. The short point that arises for consideration in this case is whether deemed credit of duty would be admissible in respect of re-rollable materials used as input in the manufacture of wire which is used as an exempted input in the manufacture of final product, namely, cement spun pipes.

6. We find that the question of admissibility of credit of duty in respect of Oxygen and dissolved Acetylene gas used as input in the manufacture of steel castings which arise as an exempted intermediate product in the course of the manufacture of the final product, namely Bogies and Couplers was examined by the Tribunal in the case of Collector of Central Excise v. Hindustan Development Corporation, reported in MANU/CK/0025/1989 : 1990 (47) E.L.T. 376 . The Tribunal after observing that this question had been the subject matter of quite a few decisions, went on to discuss the following cases :-

(i) Titagarh Paper Mills-MANU/CE/0122/1985 : 1985 (21) E.L.T. 901 (Tri.)

(ii) CCE v. Sirsilk Ltd.-MANU/CE/0270/1985 : 1986 (25) E.L.T. 297 (Tri)

(iii) CCE, Bombay v. Hindustan Lever Ltd.-1984 ECR 2006 CEGAT

(iv) Nagrat Paints v. Union of India-1978 (2) E.L.T. J 39 (Allahabad)

(v) NGEF Ltd. v.