2016 (3) TMI 846

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....te For the Respondent : Shri Govind Dixit, DR ORDER PER B. RAVICHANDRAN: The appellants are a 100% EOU engaged in the manufacture of galvanized M. S. Pipe. They are importing zinc without payment of customs duty in terms of notification no.53/79 Cus dated 3.6.1997. Condition no.7 of the said notification stipules that the imported goods are to be used for the purpose of manufacture of article....

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....mand and show cause notices were issued to the appellants to recover appropriate customs duty on imported zinc used for production of above said goods (scaling/dross/ash). These demands were to recover customs duty in the event of the above goods being treated as non-excisable. The issue was adjudicated by the original authority who vide order dated 22.06.2005 confirmed the demands. On appeal, the....

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....ded due to which legal provision. c) If at all, only duty of customs payable on zinc contained in dross, etc. can only be demanded not on the whole value of such dross, etc. This is clear from the amendment carried out in the said condition with effect from 18.05.2001. The said amendment is only clarificatory applicable for all the periods. d) There are serious inconsistencies in the impugned ....

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....on no.53/97-Cus dated 3.6.1997. The admitted facts are that the appellants imported zinc without payment of customs duty in terms of said notification. They have used the zinc for the intended purpose of galvanising. During the said process, scaling, dross and ash were generated. The dispute is on the duty liability of these products. We notice that the Hon'ble Supreme Court in Indian Aluminium Co....