1997 (11) TMI 154 - AT - Central Excise

Tribunal Upholds Denial of Duty Exemption for M.S. Round Bars Due to Input Criteria

The Tribunal upheld the Collector's decision denying duty exemption under Notification No. 208/83-C.E. for manufacturing M.S. Round bars due to the ... Iron and Steel - Demand - Limitation Issues:1. Eligibility for exemption under Notification No. 208/83-C.E.2. Classification of inputs used in manufacturing M.S. Round bars.3. Interpretation of Notification No. 208/83-C.E. and its amendments.4. Time-barred demand and suppression of facts.Eligibility for Exemption under Notification:The appeal was filed against an order denying exemption under Notification No. 208/83-C.E. for manufacturing M.S. Round bars without duty payment. The Collector held the appellants ineligible for the exemption, leading to a confirmed demand.Classification of Inputs:The appellants claimed to use re-rollable cut pieces of bars, plates, and angles as inputs for manufacturing M.S. Round bars. They argued that these inputs were not scrap but re-rollable material, falling under specific Tariff Items. The dispute centered on whether these inputs met the criteria specified in the Notification for exemption eligibility.Interpretation of Notification and its Amendments:The Notification outlined conditions for duty exemption based on the inputs used in manufacturing final products. The amendments clarified the scope of inputs eligible for exemption, specifying sub-headings under which inputs must fall. The appellants' inputs did not align with the specified sub-headings, leading to the denial of exemption.Time-Barred Demand and Suppression of Facts:The show cause notice highlighted the appellants' alleged suppression of facts regarding the inputs used in manufacturing. The Collector invoked the extended period for demand considering the suppression, leading to the dismissal of the appeal.In conclusion, the Tribunal upheld the Collector's order, emphasizing that the inputs used by the appellants did not meet the criteria specified in the Notification for duty exemption. The appeal was dismissed, citing no infirmity in the impugned order.