Double excise duty on steel ingots barred; set-off and refund available on proof of prior duty payment.

Excise duty on steel ingots manufactured from duty-paid crude iron could not be levied again where the result would be double taxation on the same material. The exemption notification covered ingots made from duty-paid iron in crude form, including pig iron, scrap iron and molten iron cast in other shapes. Relief by way of set-off or refund was available, but the assessee had to prove before the taxing authorities the quantity on which duty had already been paid and the quantity on which duty was again collected. Relief could not be refused merely because the claim was not raised earlier.

---

---

Issues: Whether excise duty could be levied again on steel ingots when duty had already been paid on the crude iron used in the manufacture, and whether the petitioner was entitled to set-off or refund under the exemption notification upon proving prior duty payment.

Analysis: The exemption notification governed steel ingots manufactured out of duty-paid iron in crude form, including pig iron, scrap iron, and molten iron cast in any other shape or size. The principle applied was that taxing provisions should not be construed to impose duty twice on the same material unless the language clearly compels such a result. The Court accepted that double imposition was impermissible in law, but held that the assessee claiming set-off or refund had to satisfy the taxing authorities with the relevant record showing the quantity on which duty had already been paid and the quantity on which duty was later collected again. The authorities could not deny relief merely because the claim had not been taken at an earlier stage.

Conclusion: The levy could not stand to the extent it resulted in double duty, and the petitioner was entitled to set-off and refund on proof of prior duty payment; the burden of establishing the factual basis for relief rested on the petitioner.

---