2025 (3) TMI 899

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....ies, (b) Expired batteries and (c) Used batteries to the appellant, who, in addition to the inputs supplied, also used some of his own materials viz., elements like Antimony, Tin, Selenium, etc., for converting them into lead/ lead alloys and clear the same to the principal manufacturer without payment of duty, in terms of Notification No. 214/86-CE dt.25.03.2006. Various SCNs were issued on this issue to the appellants as per the details below : - SCN No.  SCN Date Period involved Duty confirmed (Rs.) Penalty confirmed (Rs.) 127/TCCE/2014 03.09.2014 Nov 2009 to Feb 2014 8,52,37,263 8,52,37,263 14/TCCE/2015 09.03.2015 March 2014 to Dec 2014 2,05,12,114 20,51,211 98/TCCE/2015 06.01.2016 Jan 2015 to Oct 2015 1,74,96,181 17,49,618 21/TCCE/2017 21.11.2017 Nov 2015 to June 2017 4,32,18,708 43,21,870     TOTAL 16,64,64,266 9,33,59,962 3. All these SCNs were disposed of by way of common order i.e., impugned order dt.31.07.2019. The Adjudicating Authority, essentially, examined the eligibility of the appellant to avail the benefit of notification 214/86-CE. It is an admitted fact that the principal manufacturer has given necessary undertaking t....

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.... the submission that the principal manufacturer has received all the job work goods and used the same in their finished goods so manufactured, which were cleared on payment of appropriate Central Excise duty in support of which they even submitted certificate dt.10.01.2019, the Adjudicating Authority observed that the principal manufacturer was supplying three types of batteries viz., defective batteries, expired batteries and used batteries to the appellant, who, by smelting process, broke these batteries and obtained lead scrap contained therein. Subsequently, by using inputs viz., Antimony, Tin, Selenium, etc., on their own account, converted the lead scrap into particular grade of pure lead and also lead alloys, which were cleared to the supplier. As regards the plea of revenue neutrality, the Adjudicating Authority felt that this plea is not tenable in view of the judgment in the case of National Conductors Vs CCE & ST, Daman [2014 (306) ELT 635 (Tri- Ahmd)]. 4. As far as the issue of limitation is concerned, the Adjudicating Authority has examined the facts of the case and especially, in view of department having prior knowledge in terms of SCN dt.06.09.2013, denying the Cen....

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....e principal manufacturer and not on the appellant. They have relied on the following judgments:- a) Indian Perfumes and Flavours & Shri Achal Gupta Vs CCE, Noida [2017 (9) TMI 1060 - CESTAT Allahabad] b) RP Foundry Pvt Ltd, Mandi Gobindgarh Vs CCE, Chandigarh [2016 (11) TMI 865 - CESTAT Chandigarh] c) Uflex Ltd Vs CCE [2012 (12) TMI 883 - CESTAT New Delhi] d) Desh Rolling Mills Vs CCE, Delhi [2000 (122) ELT 481 (Tribunal)] e) CCE, Mumbai-V Vs Shakti Insulated Wires Ltd [2010 (254) ELT 333 (Tri-Mumbai)] 6. They have also contested the confirmation of demand invoking extended period on the grounds that there was a SCN dt.06.09.2013 and therefore, there was prior knowledge to the department and once there is prior knowledge, no subsequent SCNs can be issued on the same subject invoking extended period relying on the judgment of Hon'ble Supreme Court in the case of Nizam Sugar Factory Vs Collector (supra) and on the order of Delhi Bench of this Tribunal in the case of Tata Consultancy Services Ltd Vs CST, Delhi [2018 (18) GSTL 478 (Tri-Del)]. 7. On the other hand, learned AR is mostly submitting that it is not a case where notification 214/86-CE covers goods which were manu....

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....gment in the case of Jay Yushin [2000 (119) ELT 718 (Tri-LB)] which provided the criteria for determining revenue neutrality and its consequences, the plea of revenue neutrality was rejected. Similarly, he also placed reliance on the decision of coordinate bench of this Tribunal in the case of M/s National Conductors Vs CCE & ST, Daman (supra), wherein, inter alia, it was observed that question of revenue neutrality would arise only when the activities of clearance takes place within the sister concern or their own units. 9. As regards ground of limitation not being invocable, learned AR submits that apart from the fact that date of prior knowledge was not in relation to subject matter of the present appeal, as it was in relation to denial of Cenvat Credit and therefore, it cannot as such be a bar when new facts come to the notice of the department. He has relied on the judgment of Hon'ble Gujarat High Court in the case of CCE, Surat-I Vs Neminath Fabrics Pvt Ltd [2010 (256) ELT 369 (Guj)], as also the judgment of Hon'ble Supreme Court in the case of CCE, Visakhapatnam Vs Mehta & Co [2011 (2) TMI 2 - Supreme Court]. He has further contested that the reliance placed by the appellan....