2008 (6) TMI 18

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....res seventy-four lakhs six thousand two hundred and ninety-nine and paise forty-four) and a penalty of equivalent amount of Rs. 117,74,06,299.44 paise has been imposed upon the Appellants. In addition, interest has also been levied under Section 11AB of the Central Excise Act, 1944, which has not been quantified. 3. The Adjudicating Commissioner has confirmed the above demand of duty and levy of penalty amounting to over Rs. 235 crores against the Appellants denying them the benefit of Notification No. 13/2000-C.E., dated 1-3-2000. The said Notification reads as under "In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government hereby exempts such excisable goods specified in Chapt....

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.... the ore in the plant premises itself. The dispute now centres around the interpretation of the word "ore". Trade has represented that the raw 'ore' is excavated through a mining process and mines can never be a part of an integrated steel plant because of so many reasons like, safety (ores have to be extracted through blasting) and logistics. Therefore the normal practice is that after mining the ore is cleaned and washed and physically transported to the integrated steel plant, where the manufacturing process commences. However, field formation have taken the view that after washing and cleaning, the product no longer remains "ore" but becomes "ore concentrate" and as per heading 26.10, Ore and Ore Concentrate are two different excisable ....

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....on of iron from iron ore) to steel-making (conversion of iron to liquid steel); (ii) casting (solidification of liquid steel); (iii) rough-rolling (reducing size of blocks into slabs/blooms); (iv) product-rolling (production of plates, sheets, billets, rods and other shapes). Various activities from iron-making through steel-making and product-rolling are carried out in an integrated steel plant, whereas in other steel plants, the starting material being steel scraps, iron-making and steel-making from iron are not involved. It is also common knowledge and a fact of history that TISCO is the first integrated steel plant which was set up in India even prior to independence as a shining example of a pioneer nationalist entrepreneur's effor....

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....clarify the legal position as it existed from the date of issue of the notification and there is no reason as to why the benefit of the same cannot be allowed to the Appellants. 8. The Appellants have also argued that a subsequent show cause notice dated 23-2-06 issued by the same Commissioner takes a contrary stand that ore concentrate is not a different commercial commodity and on that ground, a huge demand has been raised against the Appellants alleging irregular availment of CENVAT Credit. Confirmation of the present demand and raising of the sub sequent demand clearly indicate a state of confusion in which the Excise Authorities are working. 9. We are of the considered view that the expression "integrated steel plant" is not capable ....