TaxTMI 
TaxTMI 
2002 (2) TMI 480
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....ate, appearing on behalf of M/s. Jagatsons Industries and M/s. Pragati Metals (P) Ltd., submitted that the Appellants manufacture stainless steel utensils which are exempted from payment of duty under Notification No. 4/97-C.E., dated 1-3-1997; that the duty paid S.S. Flats purchased from market are cut into small pieces which are hot rolled which are chargeable to nil rate of duty; that after annealing/ pickling, these hot rolled pieces are subjected to cold-rolling; that then these are cut into circles in untrimmed condition which are trimmed subsequently, trimmed circles are sold on payment of duty and are also used for captive consumption in the manufacture of utensils; that there is nil duty in respect of trimmed circles used for capti....
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....rh, [2001 (130) E.L.T. 137 (T) = 2001 (42) RLT 35 (CEGAT)]. He also mentioned that there was no suppression of any facts and extended period is not attracted as they held bona fide belief that process of cold rolling does not amount to manufacture. 3. Shri R. Santhanam, learned Advocate, appearing on behalf of M/s. P.R. Industries, submitted, in addition to the arguments advanced by Shri J.S. Agarwal, learned Advocate, that the demand of excise duty made from the Apellants is for the period from 1-3-1997 to 31-3-1998 whereas the show cause notice was issued on 11-7-2000 and accordingly the entire demand is hit by time limit as the proviso to Section 11A(1) of the Central Excise Act is not applicable; that the Appellants entertained ....
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.... process of cold rolling undertaken by the Appellants amounts to manufacture; that in Sagar Industries case, it was held that Patti and Pattas of steel are liable to duty. He, further, submitted that the bona fide belief claimed by them is not backed by any basis; that they were availing of Modvat credit and paying duty; that captive use was not disclosed by them to the Department and as such use of patti-pattas captively was not in the knowledge of the Department. In reply Shri J.S. Agarwal, learned Advocate, mentioned that for the Appellants the final product was circles which were cleared by them on payment of duty and accordingly they had taken the Modvat Credit of the duty paid on S.S. flats purchased from the market; that Department w....
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....he process of cold rolling of steel strips from hot rolled strips amounts to manufacture of a new excisable commodity." No such evidence, in our view, has also been adduced in the present matters so as to give rise to duty liability. As observed earlier, the Appellants are first getting the hot rolled products out of SS flats purchased from the market and this has not been rebutted by the Department. In Sagar Industries case, (supra), the Tribunal only observed that removal of cold rolled pattas/patties for manufacture of circle shall amount to removal of goods for the purpose of payment of duty of excise. However, the Tribunal further observed that "the question whether the process of cold rolling of the hot rolled products amounts to manu....