2013 (12) TMI 83

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....non-duty paid or charged to Nil rate of duty" was mentioned in the Explanation to Notification No. 202/88-C.E. It was further argued that under Notification No. 63/91-C.E., dated 25th July, 1991, the words "or Nil rate of duty" existing in the Explanation to Notification No. 202/88-C.E. were deleted. In spite of the above deletion, text of Notification No. 202/88-C.E. under the description of inputs of the table continued to mention "goods and material of Chapter 72 or Chapter 73 obtained by breaking up of ships, boats and other floating structures". It was argued that even after Notification No. 63/91-C.E., the appellants were entitled to the benefit of Notification No. 202/88-C.E. and accordingly the goods were exempted under Notification....

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....n, it is evident that all stocks of inputs in the country which are clearly recognizable as non-duty paid are not eligible to this exemption. Further under Notification No. 44/93-C.E., dated 28-2-1993, the rate of duty (Sr. No. 30) of the goods and materials of Chapter 72; obtained by breaking up of ships, boats and other floating structures, has been fully exempted by mentioning 'Nil' against the relevant column. 5. It is important to observe that Notification No. 44/93-C.E. is an exemption notification issued under Section 5A(1) of the Central Excise Act, accordingly all ship breaking materials of Chapter 72 are clearly recognizable as non-duty paid. The goods 'chargeable to nil rate of duty' will be those situations where under t....

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.... be required to be added to the aggregate value of clearances under Notification No. 1/93-C.E. It is correct as argued by appellants that for entitlement of exemption for the financial year 1993-94, value of clearances of 1992-93 were required to be taken into consideration. Further, it is also relevant to know that under Notification No. 1/93-C.E., dated 28-2-1993, the rate of duty for the year 1993-94 depended upon two factors; (i) value of clearances during the financial year 1992-93 (ii) value of clearances made by the appellants during 1993-94 after crossing the exemption limit. Even after agreeing with the appellants that value of clearances during the financial year (1992-93) was within the exemption limit, still appellants were requ....