TaxTMI 
TaxTMI 
2017 (6) TMI 215
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....appeals are summarised below: Particulars C/28603/2013 C/28604/2013 E/314/2004 Bill of Entry 6 (104 dated 04.02.00, 408 dated 18.02.00, 538-542 dated 28.02.00) 2 (212 dated 12.11.99, 167 dated 09.12.99) Demand 3,94,67,488 3,45,50,527 Penalty 50,00,000 50,00,000 Fine 1,00,00,000 1,00,00,000 Show Cause Notice Date 09.08.2000 04.08.2000 27.07.2000 Order-in-Original No. & Date Commr./Ajd./03/2013-14 dated 23.02.2014 Commr./Ajd./03/2013-14 dated 23.02.2014 92/2000 dated 07.08.2000 Order-in-Appeal No. & Date - - 467/2003-CE dated 23.12.20....
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....duly supported by a technical write-up. 5. The Assistant Commissioner of Central Excise, vide the Order dated 07.08.2000, rejected the application on the ground that the scrap is not added while processing the liquid metal / steel at the electric arc ladle furnace but is used as a coolant in the basic oxygen furnace. The basic purpose of using scrap in blast furnace is different from the purpose for which scrap is used in electric arc furnace, induction furnace or hot blast cupola. Hence, the application for end use certificate was rejected. 6. Being aggrieved by the above Order, the Appellant filed appeal before the Commissioner (Appeals) who passed impugned Order-in-Appeal No. 467/2003 upholding the rejection of end use certificate ....
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...." has been interpreted to include intended "for use" and also covers direct as well as indirect use. iii) The Appellant further relies on the following cases wherein it was held that the term for use contemplates intended for use and not actual use. • Prakash Metal Crafts Industries v. Commissioner of Commercial Tax - 2016 (337) ELT 342 (M.P) • Union of India Vs. Hindustan Zinc Ltd. - 2014 (303) E.L.T.T. 321 (S.C.) • Mangalore Chemical & Fertilizers Ltd vs. CCE, - 2009 (248) ELT 647(Tri-Bang); • Clough Engineering Ltd. Vs. Commissioner of Customs (Import), Mumbai - 2006 (198) E.L.T. 457 (Tri. Mumbai); iv) In the instant case, the Appellant has used the scrap in the basic ....
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....flow chart indicating the process of steel making in the appellants factory. The flow chart, which is reproduced below, also indicates that the imported scrap is partially added at the level of basic oxygen furnace and the rest of the scrap is added at the stage of electric arc furnace. He also brought to our notice that the liquid steel arising out of basic oxygen furnace is transferred into electric arc furnace for further refinement. 13. Learned DR supported the impugned orders. He further submitted that in terms of notification, only scrap which is for use in the electric arc furnace will be entitled to the benefit of concessional customs duty. The lower authorities have recorded findings that the appellant has used the imported scra....
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....sistant Commissioner of Central Excise in whose jurisdiction the said melting scrap of iron and steel has been used in electric arc furnace or induction furnace or melting in a hot blast cupola, that the said melting scrap has been so used." 15. The main reason cited by the original adjudicating authority as well as Commissioner (Appeals) for denying the benefit of notification and refusal to issue 'End Use Certificate' is that imported melting scrap has been charged into the basic oxygen furnace, that too as a coolant. Since the appellant has not used the imported melting scrap in the electric arc furnace, the lower authorities have held that the benefit of Customs Notification will not be available to them. 16. The learned C....
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....c arc furnace for further processing. Considering this route taken by the portion of the scrap fed into the basic oxygen furnace, it is evident that such scrap indirectly finds its way into the electric arc furnace. In this way the scrap fed into basic oxygen furnace ultimately finds use in the electric arc furnace. 17. The Customs Notification No.20/99 extends the benefit of concessional duty for melting scrap for use in electric arc furnace. We find, after considering the process flow chart, that significant portion of the scrap is directly loaded into the electric arc furnace. As far as this portion of the scrap is concerned, we find no reason for denying the benefit of Customs Notification. Coming to the portion of the scrap loaded i....