1995 (6) TMI 95 - AT - Central Excise

Summary

Issues:
Classification of steel ingots and melting scrap for Central Excise duty exemption under Notification No. 237/75.

Analysis:
1. The Collector of Central Excise, Meerut appealed against an order by the Collector Central Excise (Appeals) regarding the classification of steel ingots and melting scrap for duty exemption. The Collector (Appeals) allowed the appeal, setting aside the impugned orders.

2. The appellants, engaged in steel ingot manufacturing, claimed nil duty for steel ingots and melting scrap. The Assistant Collector initially approved their classification list but later informed that specific notifications applied only to steel ingots, not melting scrap. The Assistant Collector assessed melting scrap at a specific duty rate. The appellants appealed to the Collector (Appeals), who upheld their claim for exemption for both steel ingots and melting scrap.

3. The ld. SDR argued based on various Tribunal judgments that steel ingots and melting scrap were distinct commodities, and exemptions applied only to steel ingots. The ld. Consultant for the respondents highlighted the Board's clarification that the exemption applied to both steel ingots and melting scrap. Reference was made to the Supreme Court's decision in a similar case where substantial justice was emphasized.

4. The Tribunal considered the submissions, case law, and the Board's circular. It noted conflicting Tribunal judgments and the absence of Board clarification in previous decisions. The Tribunal acknowledged the Supreme Court's decision but emphasized the unique circumstances of the case. It rejected the appeal and upheld the impugned order.

5. Member G.P. Agarwal disagreed with Member G.R. Sharma's decision, citing previous Tribunal judgments and the Supreme Court's decision. Member Agarwal upheld the Tribunal's earlier decision regarding the exemption's scope and dismissed the appeal.

6. Member P.K. Kapoor concurred with Member Agarwal's findings, leading to a majority opinion to set aside the impugned order-in-appeal, restore the original order, and allow the appeal.