TaxTMI 
TaxTMI 
2002 (8) TMI 168
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....8-11-88 1-10-85 to 15-9-87 7. E/904-R/95-Mum. 8,23,097.99 85,000 7/11-7-89 6-8-85 to 27-3-87 8. E/1589-R/98 Mum. 14,38,960.29 1,50,000 3-2-87 1-8-93 to 15-12-86 3. The brief facts of the case are that the appellants are manufacturers of rolled products such as flats, bars and rods falling under TI No. 25(9)(i) of the Schedule to the erstwhile Central Excise Tariff upto 27-2-1986 and under sub-heading Nos. 7209.20 and 7209.90 of the Schedule to the Central Excise Tariff Act, 1985 for the subsequent period. These goods were manufactured from re-rollable materials obtained from ship breaking and from scrap purchased from the open market. The appellants claimed the benefit of exemption in terms of Notification No. 208/83-C.E., dt. 1-8-83 as amended which provides for exemption to specified final products made from duty paid specified raw materials. It appeared that the raw materials used by the factory of the appellants were classifiable under TI 25(3)(i) and (ii) of the erstwhile Tariff prior to 28-2-1986, and under Chapter Heading No. 72.15 or 73.09 on and from 1-3-1986, and since the above mentioned headings were not specified in column 2 of....
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.... (iii), (7)(ii), (8), (9)(ii) and (11) of the said Item. Goods falling under sub-items (4)(ii), (6)(ii) and (iii), (7)(ii), (8), (9)(ii), (10), (11), (14) and (16)(ii) of the said Item; flats exceeding 5 mm in thickness; and hot-rolled strips, other than galvanised strips, exceeding 5 mm in thickness. 3. Plates, sheets strips, skelp, Hoop or flats not exceeding 5 mm in thickness. Tubes and pipes and blanks therefor of steel other than seamless tubes and pipes of steel. 4. Galvanised sheets, plates and universal plates. Galvanised forms falling under sub-item (13)(I) of the said Item. 5. Sheets, plates and universal plates. Forms other than galvanised forms falling under sub-item (13)(iv) of the said Item. 6. Sheets including tinned sheets. Goods falling under sub-item (13)(iii) of the said Item 2. Nothing contained in this notification shall apply to the goods which are produced or manufactured in a free trade zone and brought to any other place in India (vide Notification No. 81/83-C.E., dt. 1-3-1983). [Notification No. 208/83-C.E., dated 1-8-1983 as amended by Notification No. 38/84-C.E., dated 1-3-1984] It is the contention o....
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....id for the reason that they had been cleared from the factory of the input manufacturer at nil rate of duty in terms of Notification No. 386/86-C.E., dt. 28-8-86. He therefore pleads that the impugned orders may be set aside and the appeals allowed by extending the benefit of exemption under the relevant notification. 5. Opposing the prayer the ld. DR submits that the case of the department is that the inputs used in the manufacture of final products do not fall within any of the specified Tariff Headings and the Department has not accepted that the inputs are re-rollable material. He further submits that inputs are clearly recognizable as non duty paid as the department has established that ship breaking material had been received by the factories of the manufacturers under document showing that the material had not suffered any duty but had come from the non duty paid stream. He seeks to distinguish the Larger Bench decision in the case of Adarsh Steel Re-rolling Mills supra on the ground that in that case, the admitted position as seen from the appeal of the Revenue before the Tribunal is that re-rollable scrap was used as inputs, while there is no such admission in the prese....
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....purpose of Notification No. 208/83 CE, dt. 1-8-83". The Bench has rejected the contention of the Revenue that the inputs in question are waste and scrap not included within the purview of the relevant notifications, holding that waste and scrap would cover only waste and scrap generally used for re-melting, and that re-rollable scrap which is not for re-melting will have to be classified in other appropriate headings. 7. In the cases before us although the source of re-rollable scrap is different namely that it is ship breaking scrap and not scrap obtained from breaking up of condemned railway engines, that, to our minds would make no difference to the basic issue namely as to whether re-rollable scrap is eligible to the benefit of Notification No. 208/83. Applying Circular dt. 8-9-83 and Baroda Collectorate Trade Notice No. 97/83, dt. 6-8-83 we hold that the inputs received by the appellants fall either under sub-item (9) or (11) of Tariff Item 25 and hence fall within the specified inputs at Serial No. 2 of the table annexed to Notification No. 208/83. For the period after the introduction of the new Central Excise Tariff in 1986, the inputs natural parentage under Heading 72.....