2011 (2) TMI 610

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.....K. Mall, SDR, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. -  The appellant is engaged in the manufacture of electrical stamping and laminations and had set up a unit in Kandla Special Economic Zone for recycling of iron and steel scrap. According to the statement of facts submitted by appellant, the appellant unit situated in SEZ was importing different kinds of scrap,....

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....f use of such scrap in electric arc furnace, duty demand of Rs. 21,59,348/- has been confirmed under Section 11A of the Central Excise Act, 1944 and penalty of Rs. One lakh has also been imposed on the appellant. 2. The learned consultant on behalf of the appellants submitted that impugned order is without jurisdiction since what was to be demanded was customs duty and not Central Excise d....

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....tification No. 83/90-Cus., was applied, would show that the department was right in demanding the duty under Section 11A of Central Excise Act, 1944 only. He submitted that the submission of the learned consultant that duty was demanded in terms of the Notification No. 83/90 was totally wrong. 4. We have considered the submissions made by both the sides. Learned advocate while submitting t....

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..... has been used for the purpose of calculation of rate of duty and to facilitate clearances of scrap for recycling for use electric or furnace. In our view, the matter is very clear and there is no doubt that duty is demandable under Section 11A of Central Excise Act, 1944 in terms of the bond executed by the appellant and in terms of the conditions of notification under which the goods were clear....