2006 (7) TMI 488

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....sited in cash and balance half to be secured by way of bank guarantee. 2. The above order of the Tribunal was challenged by the appellants by way of filing writ petition before the Hon'ble High Court of Bombay, which stands disposed off by order dated 21-12-2005. Vide said order, the Hon'ble High Court has directed the Tribunal to re-hear the stay application. 3. In terms of the directions of the Hon'ble High Court contained in the above order, the stay petition has been listed and heard today. Shri V. Sridharan, ld. Advocate appearing along with Shri Prakash Shah, ld. Advocate, contested the demand on merits as also on the point of limitation. The demand in question stands confirmed against the appellants, who are engaged i....

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....ed in the impugned order of the Commissioner that the products are crude salt of precious metals having less impurity. However, the Commissioner has held them to be marketable only on the ground that they contained precipitations/compounds of precious metal and inasmuch as, they have some value corresponding to the contents of the precious metal, their lower purity and lower metal content would not make them unmarketable. Similarly, submits the ld. Advocate that the fact of issuance of 11C notification in respect of some of the intermediate goods falling under Chapter 28 generated during the course of manufacture of gold jewellery does not ipso facto, go to show that such salts are marketable and, hence, excisable. 6. In support of ....

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....hloride is indicative of their being marketable, and hence, excisable nature of the same. He submits that there is not much difference in the purity of the metal contents in the sold platinum chloride, inasmuch as the metal contained in the sold item is 43.6% and in the captively item is 35.21%. As such, the Hon'ble Supreme Court's decision in the case of Hindustan Zinc Ltd., where there was a vast difference in the metal content is not applicable. 10. Ld. DR further submits that 11C notification has been issued in respect of salts of other precious metals emerging during jewellery manufacture. This fact reflects upon the intention of the revenue to treat the said intermediate salts of precious metal as excisable goods. The fact tha....