Section 11C relief for non-alloy steel wires and bars prevented sustainment of the duty demand

Duty on wires and bars of non-alloy steel under sub-heading 7217.90 for 14 May 1992 to 25 June 1992 was restricted by the later Section 11C notification and Notification No. 21/96-C.E. (N.T.), which exempted the excess duty above the duty on Rs. 1,000 per M.T. for the relevant period. As the Revenue accepted the factual position, the dispute did not survive on merits. The duty demand was therefore not sustainable and the impugned order was set aside in favour of the assessee.

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Issues: Whether the duty liability on wires and bars of non-alloy steel falling under sub-heading 7217.90 for the period 14-5-1992 to 25-6-1992 was required to be restricted in terms of the notification issued under Section 11C of the Central Excise Act, 1944.

Analysis: The goods in question were covered by the later notification issued under Section 11C and Notification No. 21/96-C.E. (N.T.), dated 5-8-1996, which exempted the excess duty beyond the duty on Rs. 1,000 per M.T. for the relevant period. The factual position was accepted by the Revenue, and the dispute did not survive on merits.

Conclusion: The duty demand could not be sustained, and the impugned order was set aside in favour of the assessee.

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