TaxTMI 
TaxTMI 
2011 (5) TMI 382
X X X X Extracts X X X X
X X X X Extracts X X X X
....oms Excise Tariff Act, 1985. The appellants during the period from 1.3.93 to 28.2.94, were availing exemption Notification No.202/88-CE, dt.20.5.88 and from 1.3.94 onwards availed SSI Notification No.1/93-CE, dt.28.2.93. 2. Notification No.202/88-CE dt.20.5.88 exempts the specified final products subject to condition that such final products are made from the specified inputs on which the duty of Excise leviable under the Central Excise Act and additional duty leviable under the Customs Tariff Act, as the case may be, has already been paid and no credit of duty paid in the inputs has been taken under Rule 56A or 57A of Central Excise Rules. Inasmuch as the appellants were using the ship breaking material as their raw material, which....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... under exemption by virtue of Notification No.44/93-CE, dt.1.3.93 and as such, the inputs were clearly recognizable as being non-duty paid/exempted. As such, the appellants had failed to satisfy the above condition in which case, the benefit of Notification No.202/88 was wrongly availed by them and the Central Excise duty is required to be confirmed against them. 4. As a consequence, the appellant s aggregate clearances exhausted and they were held not entitled to the benefit of Notification No.1/93-CE, for the month of March 1994. Consequently, adjudicating authority confirmed the duty of Rs.11,63,337/- (Rupees Eleven Lakhs, Sixty Three Thousands, Three Hundreds and Thirty Seven only) and of Rs.4,62,516/- (Four Lakhs, Sixty Two Tho....
X X X X Extracts X X X X
X X X X Extracts X X X X
....its that the same has various sub-headings covering crews, ships, boats, fishing vessels, yatchst, tugs, and other vessels. As such, he submits that if the scrap obtained is not from ships, boats, or floating structures, but from yatchst, tugs, pusher crafts, dredger etc, the same will not be exempt under Notification No. 45/93-CE. As such, he submits that the inputs may come from breaking up of other structures of Chapter 89, in which case the onus lies very heavily upon the Revenue to show that the same were cleared by manufacturers under the claim of exemption. 6. Countering the arguments, learned SDR submits that the issue is no more res-integra and stand settled by Larger Bench decision of the Tribunal in the case of M/s Machin....
X X X X Extracts X X X X
X X X X Extracts X X X X
.....37 of Notification No. 44/93. The said exemption was available to the goods and material of Chapter 73 obtained by breaking up of ships, boats and other floating structures. There was no condition attached to the availability of the exemption in terms of said notification. As such, ld.Advocate s submission that the said notification was conditional and as such the manufacturer of the raw material might or might not have availed the same, cannot be appreciated. Further, ld.Advocate s contention is that the exemption was available to the goods and materials obtained by breaking up of ships, boats and other floating structures will not apply to all goods of Chapter 89 which covers variety of sea-going vessels. The same will only exempt materi....