2000 (2) TMI 354 - AT - Central Excise

Summary

The Appellate Tribunal CEGAT, New Delhi confirmed a duty demand of Rs. 13,57,144 against manufacturers of M.S. Bars and Rods for using unusable rail scrap as raw material without paying appropriate duty. The Tribunal found that Bars and Rods made from old railway scrap were not covered by Notification No. 202/88-C.E. However, the demand was considered prima facie barred by limitation due to the appellants' genuine belief based on circulars issued by the Central Board of Excise and Customs. The requirement of pre-deposit of duty and penalty was dispensed with, and recovery was stayed during the appeal.