TaxTMI 
TaxTMI 
2008 (3) TMI 54
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....lling under Chapter 72. The dispute in the present appeal relates to interpretation of exemption Notification No. 202/88-C.E., dated 20-5-88, as amended. The said Notification provided exemption from the whole of duty of excise to the specified goods falling under Chapters 72 & 73, if the same are manufactured out of specified inputs on which duty of excise has already been paid. Inasmuch as, the respondent's raw material was obtained by breaking up of ships and were cleared by the manufacturer under exemption on Notification, without payment of duty, revenue entertained a view that the benefit of Notification No. 202/88-C.E. was not available to the respondents. Accordingly, proceedings were initiated by issuance of two show cause noti....
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....of this Notification, all stocks of inputs in the country, except such stocks as are clearly recognizable as being non-duty paid, shall be deemed to be the inputs on which duty has already been paid.' 4. The Commissioner (Appeals) has observed that with effect from 25-7-91, when the phrase "or charged to Nil rate of duty" was omitted, it becomes clear that it was the policy of the Government to consider nil rate of duty as distinct from non-duty paid and allowed the stocks which were subjected to nil rate of duty to be at par with other stocks of inputs in the country. However, he considered the Hon'ble Supreme Court decision in the case of Dhiren Chemical Industries reported in 2002 (139) E.L.T. 3 (S.C.) as also the Collector of....
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....tion in the show cause notice that since there was no specific heading in the Tariff for materials obtained from ship breaking, the inputs were not specified in column 2 of the Table and exemption under the said Notification was not available. However, the inputs continued to be classified under Chapters 72 and 73 and the exemption was correctly availed on that count also." 5. As against the above, the revenue has heavily relied upon the Hon'ble Supreme Court in the case of C.C.E, Vadodara v. Dhiren Chemical Industries - 2002 (139) E.L.T. 3 (S.C.) and the subsequent decision in the case of Kalyani Packing Industries v. UOI - 2004 (168) E.L.T. 145 (S.C). 6. We have gone through the above decisions. The judgment in the case of Dhire....
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....t or Tribunal would also give effect to circulars of the Board in preference to a decision of the çonstitution Bench of this Court. Where as a result of dispute the matter is sub-Judice a Court/Tribunal is, after Dhiren Chemical's case,, bound to interpret as set out in that judgment. To hold otherwise and to interpret in the manner suggested would mean that Courts/Tribunals have to ignore a judgment of this Court and follow circulars of the Board. That was not what was meant by Para 9 of Dhiren Chemical's case". 7. Inasmuch as the present proceedings have been kept alive, we are of the view that the judgment in the case of Dhiren Chemical Industries would apply. As regards the decision in the case of Dhiren Chemical Indus....