1984 (10) TMI 221 - AT - Central Excise

Summary

Issues:
1. Interpretation of Exemption Notifications No. 54/62 and 119/66 under the Central Excises and Salt Act, 1944.
2. Determination of excise duty liability on products manufactured using imported copper scrap.
3. Applicability of extended period of limitation for duty demand.
4. Concealment of facts by the appellants regarding the use of imported scrap in manufacturing products.
5. Consideration of burning/melting losses in excise duty calculation.

Analysis:

1. The appeal before the Tribunal challenged the order modifying the duty demand on the appellants for wrongful utilization of Exemption Notifications No. 54/62 and 119/66. The Collector's review order reduced the duty demand from Rs. 18,93,521.48 to Rs. 3,66,478.50, maintaining the demand only for products manufactured using imported scrap without paying countervailing duty.

2. The show cause notice alleged that the appellants cleared products without paying excise duty by using imported copper scrap under the mentioned notifications. The Collector's order confirmed duty demand for products made from imported scrap without countervailing duty payment, rejecting the time-bar argument due to suppression of facts by the appellants.

3. The Collector's order upheld the extended period of limitation due to the concealment of essential facts by the appellants regarding the use of imported scrap. The Tribunal found the duty demand enforceable for products made from imported scrap, as no countervailing duty had been paid.

4. The Tribunal rejected the argument that the imported goods could be equated with goods purchased from the market under the notifications. The plea for consideration of burning/melting losses in duty calculation was dismissed for lack of evidence and timely submission.

5. The Tribunal affirmed the Collector's decision that the duty demand related to products made from imported scrap was valid. The appellants' request to suspend the duty demand pending determination of countervailing duty liability was denied, emphasizing the enforceability of the duty amount based on the facts presented.

In conclusion, the Tribunal upheld the Collector's review order, confirming the duty demand for products manufactured using imported scrap without countervailing duty payment, and dismissed the appeal.