Excise exemption for pipes and tubes made from bars denied; Tribunal upheld demand and penalty under the notification.

Steel pipes and tubes manufactured from bars were found not to qualify for exemption under Notification No. 202/88-C.E. dated 20.05.1988. The statutory records described the inputs as M.S. bars, and the director's statement under Section 14 of the Central Excise Act admitted that the goods were made out of bars. Relying on its earlier view that pipes and tubes made from bars fall outside the notification, the Tribunal held the claimed exemption was unavailable and upheld the demand and penalty.

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Issues: Whether steel pipes and tubes manufactured out of bars were entitled to the benefit of Notification No. 202/88-C.E. dated 20.05.1988.

Analysis: The inputs recorded in the statutory documents were described as M.S. bars, and the director's statement under Section 14 of Central Excise Act admitted that the pipes and tubes were manufactured out of bars. The Tribunal had already held that pipes and tubes made from bars do not qualify for the exemption under Notification No. 202/88-C.E. dated 20.05.1988.

Conclusion: The claimed exemption was not available to the assessee, and the demand and penalty were upheld.

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