1986 (5) TMI 254

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....e judgment of the Court was delivered by   V. BALAKRISHNA ERADI, J.-This appeal has been preferred against the judgment of the High Court of Andhra Pradesh dated November 5, 1970, on the strength of a certificate of fitness granted by the High Court. The appellant is a firm carrying on business of "re-rolling" having its factory at Moosapet near Sanatnagar, Hyderabad. A contract was entered into between the appellant and the 5th respondent, whereby the appellant undertook to convert 3,000 metric tonnes of second class untested rails into M.S. rounds of different specifications by the process of re-rolling. Accordingly, the quantity of 3,000 metric tonnes of second class untested rails was supplied to the appellant by the 5th responde....

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....tion filed by the appellant to the Central Government also met with the same fate. Thereafter the appellant filed a writ petition in the High Court of Andhra Pradesh seeking an appropriate writ quashing the notices of demand on the ground that the M.S. rounds in question were not liable to be assessed to duty under item No. 26-AA of the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter called "the Act"), and that in any event the impugned demands were time-barred under rule 10 of the Central Excise Rules, 1944, and the resort sought to be made to the provisions contained in rule 10-A was not legal or warranted. Neither of the aforesaid contentions found favour with the High Court and accordingly, the writ petition was di....

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....ng under the said item and having already paid the appropriate amount of duty, from so much of the duty of excise as is equivalent to the duty payable on the said article." The effect of this notification was only to grant a partial remission of the excise duty payable under item No. 26-AA of the First Schedule to the extent of the appropriate amount of duty which was already paid on the articles from out of which the steel products falling under item No. 26-AA had been made. In the case before us the M.S. rounds were manufactured by re-rolling untested rails on which no excise duty whatever had been paid. It is only if the appropriate amount of duty had already been paid on the article which formed the raw material for manufacture of the ....