K.S. Venkataramani, Member (T)

1. This appeal is directed against the order dated 30-6-1987 passed by the Collector of Central Excise (Appeals), Madras, by which he had upheld the order dated 20-2-1987 passed by the Assistant Collector of Central Excise, Lal Bagh Division, Bangalore, denying the appellants deemed MODVAT credit on Copper Waste and Scrap of Aluminium and unwrought Copper which they had availed in terms of the direction of the Government of India dated 7-4-1986 issued under Rule 57G(2) of the Central Excise Rules, 1944. The amount of MODVAT credit which the appellants were asked to reverse on this ground was Rs. 1,62,321.52.

2. The appellants are engaged in the manufacture of machined and unmachined Copper-base Alloy castings and components falling under various sub-headings of the Central Excise Tariff Act, 1985. They used unwrought copper and waste and scrap of Copper and Scrap of Aluminium as inputs in the manufacture of the final products mentioned above. They opted for MODVAT with effect from 11-6-1986 after filing the requisite declaration under Rule 57G on 5-6-1986. In terms of Government of India, Ministry of Finance order dated 7-4-1986 issued under Rule 5