P.C. Jain, Member (T)

1. Since a common question is involved in all the three appeals, a common order is being passed.

2. Short question involved in these appeals is whether the MODVAT credit taken by the respondents herein in terms of Government of India's order F.No. B-22/5/86-TRU, dt. 7.4.1986 on steel sheets purchased from the open market from dealers of iron and steel products is permissible or not. The department contends, as a common ground of appeal, that the said deemed credit taken by the respondents herein is not admissible because the M.S. sheets are wholly exempted from duty under Notification 208/83, dated 1.8.1983 (as amended) and therefore, such M.S. sheets on which deemed credit has been taken by the respondents are clearly recognisable as non-duty paid and hence in terms of proviso (ii) to para 2 of Government of India's aforesaid order dated 7.4.1986 would apply making the credit Inadmissible.

The respondent company, on the other hand, contends inter alia, that the Notification 208/83, dated 1.8.1983 (as amended) does not give unconditional exemption, inter alia, to M.S. sheets. Before the sheets can be taken as wholly exempted under the said notification eithe