2003 (11) TMI 78 - SC - Central Excise

Duty demand - Initially exemption from duty granted - But subsequently Initiated proceedings that appellant manufactured iron and steel products from re-rollable scrap, bar scrap, M.S. Plate cutting, M.S. Scrap Plate, angles, etc., M.S. Round Bar Scrap, cut of steel Iron Plate had neither obtained licence nor paid duty, nor followed established procedure - Held that - Tribunal without adverting to the contentions decided the matter - Therefore, matter remitted back to Tribunal for de novo consideration - Decided in favour of assessee.

Summary

Issues:
Manufacture of M.S. Round Bars from re-rollable cut pieces, duty exemption, procedural compliance, classification of raw material as scrap or re-rollable material.

Manufacture of M.S. Round Bars:
The appellant manufactures M.S. Round Bars using old and re-rollable cut pieces of bars, plates, angles, etc., purchased from various sources. The Revenue initially considered the products exempt from duty but later alleged non-compliance with licensing and duty payment requirements due to the nature of raw materials used.

Classification of Raw Material:
The core issue revolves around the classification of the raw material used by the appellant. The appellant argued that the inputs are re-rollable material and not scrap as they can be processed to form rods and then shaped through re-rollers. However, this contention was not accepted by the authorities, leading to the appeal to the Tribunal.

Procedural Compliance and Tribunal's Decision:
The Tribunal, without delving into the appellant's contentions, made a decision in the case. The Supreme Court, upon review, set aside the Tribunal's order and remitted the matter for fresh consideration, emphasizing that all appellant's contentions should be considered. The deposits made by the appellant were to be subject to the final order of the Tribunal, with a directive for the Tribunal to hear and dispose of the matter within four months.

In conclusion, the Supreme Court allowed the appeal, highlighting the need for a thorough reconsideration of the case by the Tribunal in line with legal provisions. The judgment ensures that all arguments raised by the appellant are duly examined, underscoring the importance of procedural fairness and compliance in excise duty matters.