2006 (12) TMI 347 - AT - Customs

Summary

Issues:
1. Denial of benefit under Customs Notification No. 17/2001 for High Melting Scrap (HMS) imported in 2001 due to non-operation of induction furnace.
2. Non-production of end-use certificate within stipulated time.
3. Failure to give intimation to Central Excise authorities about the import of scrap.

Analysis:
1. The case involves the denial of benefits under Customs Notification No. 17/2001 for High Melting Scrap (HMS) imported in 2001 due to the non-operation of the appellant's induction furnace since December 1999. The lower authorities based their decision on the fact that the furnace was not operational, questioning the intent to use the imported goods for melting purposes. However, a settlement was reached with the Electricity Board to restore electricity supply to the furnace in January 2007, allowing the appellant to run the furnace. The appellate Commissioner confirmed the availability of the imported goods in the appellant's factory, supporting the appellant's claim that they intend to use the scrap for melting once the electricity supply is restored.

2. The appellant admitted to not producing the end-use certificate within the stipulated time due to the shutdown of the furnace caused by the Electricity Board's power supply disconnection. They argued that it was impossible to obtain the certificate under the circumstances. The jurisdictional Deputy/Assistant Commissioner has the authority to extend the time for producing the end-use certificate, which the appellant planned to apply for once the furnace resumed operation.

3. The impugned order found the appellant did not give intimation to the Central Excise authorities about the import of scrap. However, this finding was challenged based on the Central Excise appellate Commissioner's order, which confirmed the necessary intimation had been provided to the Central Excise authorities. The appellant had also been granted Cenvat credit of the CVD paid on the scrap, further supporting their compliance with the requirements.

In conclusion, the Tribunal set aside the lower authorities' orders and remitted the case back for fresh adjudication. The appellant was given a reasonable opportunity to produce the end-use certificate within three months. Failure to do so would result in the restoration of the impugned order. The Tribunal acknowledged the appellant's predicament and assured them the opportunity to comply with the requirements once their induction furnace resumed operation.