2004 (4) TMI 230 - AT - Central Excise

Summary

Issues:
1. Stay of operation of the order of the Commissioner (Appeals)
2. Duty demand on iron ore fines
3. Maintainability of appeals by the Revenue before the Commissioner (Appeals)
4. Process of sieving of iron ore pellets to iron ore fines

Analysis:
1. The Tribunal found that it was possible to decide the appeals themselves at the current stage and proceeded to do so with the consent of both sides, after waiving pre-deposit for the application for stay of operation of the order of the Commissioner (Appeals).

2. The Deputy Commissioner of Central Excise dropped the duty demand of Rs. 90,00,334/- against the appellants based on the inputs of iron ore fines. The department contended that iron ore fines could only be removed on payment of duty equal to credit availed. The lower appellate authority set aside the order of the adjudicating authority and allowed the appeals by the Revenue for restoration of show cause notices. The Tribunal noted the appellants' objections to the demand and the question of maintainability of appeals by the Revenue before the Commissioner (Appeals). The case was remanded to the Commissioner (Appeals) for fresh decision on all the raised pleas by the assessees.

3. The Tribunal observed that the Commissioner (Appeals) did not provide detailed findings on the maintainability of the appeals or on the contention that the process of sieving iron ore pellets to iron ore fines does not amount to manufacture. The case was remanded for fresh decision after extending a reasonable opportunity of hearing to the appellants, without insisting on pre-deposit.

4. The appeals were allowed by way of remand, emphasizing the need for the Commissioner (Appeals) to provide detailed findings on the raised pleas and pass fresh orders in accordance with the law.