2017 (1) TMI 132

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.... ORDER The appellants are engaged in Aluminium alloy wheels falling under CETA 8708.00, operating as 100% EOU.  In the course of manufacturing of these items, dross floats up in the holding furnace which is removed before the castings are made.  Dross is cleared to DTA on payment of excise duty at 16%.  Department took the view that since appellant had imported Aluminium ingots wit....

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....or hearing, on behalf of the appellant, learned counsel Shri B. Srivinivasa submitted that when the appellant has cleared dross and slag on payment of duty, there can be no reason to demand duty on Aluminium ingots imported by them with duty exemption. 3.  On the other hand learned AR Shri P.S. Reddy reiterates the correctness of the impugned order. 4.  Heard both sides and have gone t....

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....ave to necessarily pay Customs duty equal to amount that leviable on proportionate Aluminium ingots obtained under that Notification.  Hence applicable customs duty will have to be paid on the inputs contained in the dross/slag. 5.  In the event, we do not find any reason to interfere with the demand of Rs. 84,09,465/- of Customs duty foregone, in the impugned order.  However, bein....