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TMI Blog1986 (9) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... 982/30-4-1982 (we do not understand why there are two dates) list a number of them in paragraph 2: they are No.237/75, No. 112/77, No.235/77, No. 156/79, No.53/80 and No.16/81. These five or six notifications extended partial or full exemption at different times. For the exemption, certain conditions were also prescribed and are reproduced by the Collector; these are that the steel ingots should be manufactured from (1) iron or steel melting scrap; (2) a combination of the materials referred to at (1) above with fresh unused steel melting scrap on which the appropriate duty of excise has been paid; and (3) iron in any crude form falling under item No.25 of the schedule on which the appropriate duty of excise has been paid in combination ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under exemption from 1-1-1977 to 14-7-1977, 15-7-1977 to 8-4-1979 and 9-4-1979 to 30-11-1981. In the same paragraph, however, he said that the company was liable to pay duty at rates varying from Rs.100/- to Rs.330/- per metric tonne for periods from 1-1-1977 to 30-11-1977. At the end of his order, however, he says that the show cause notice dated 31-12-1981 demanded duty from 1-1-1977 to later periods. This is somewhat confusing and it is not possible to understand what was the period covered. The parties seem to have added to the confusion by talking about reopening the issue after a lapse of six years.] 3. The learned counsel for M/s. Indo-Japan Steels Ltd. Mr. Gupta presented long and illuminating arguments. He said he relied tot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der after the Collector did. In any case, the Board's order does not bind the Tribunal, and the department now sought the order of the Tribunal. 6. The learned SDR argued that the opposite counsel argued that the Government had given instructions to the trade on these matters, but, no such instructions were given to the trade; the instructions were all given to the department. In any case, the periods covered were prior to the circular relied upon by the opposite counsel. 7. The learned SDR said he would adopt in this case the arguments advanced on the department's behalf at paragraph 6 of the Guest Keen Williams' appeal. 8. He rejected the argument that the addition of ferro alloys were technological necessities;, in any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the doctrince of strict construction of notifications and there was no need, therefore, to quote 1985(56) ITR 422 to convert believers. We shall, therefore, go only by the facts of the case and the technological ingredients that bear upon the problem. 14. The learned SDR said that the ferro alloys like ferro-silicon and ferro-manganese are not technological necessities and that only flux materials are true technological necessities in steel making. This is incorrect. Flux materials are not technological necessities in steel making, except in certain applications as for example, the oxygen-blown steel making process when slag-forming fluxes like burnt lime, fluorspar, mill scale are added for the limited purpose of producing a slag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not have much to do with steel making. Their utility stops at the iron making/smelting, though they may, in certain process of steel making, especially those in which the scrap indicates it, be added in the furnace. 16. On the other hand, ferro alloys or ferro-silicon, ferro-manganese, ferro chrome, nickel and carbon are all widely used materials in the steel making industry. Indeed, it is true to say that no steel can be made without the addition of alloys, because steel itself is an alloy and consists of various materials each depending on the need and the application that the finished product will be put to. The common material carbon is always an ingredient in steel making and we have never heard of any one saying that it should n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eels or, simply, alloy steels. It is not possible to make steel without alloys of one kind or another and, therefore, to expect a person to make steel without alloying material is to ask for the impossible and the man might as well close down his factory. 17. The notifications as reproduced by the Collector say only that the steel ingots should be made from iron or steel melting scrap or combination of this or that material like unused melting scrap, iron in any crude form, runners and risers etc. etc. The department cannot surely expect anybody to make steel out of such indeterminate materials unless he makes them with the aid of alloying materials; ferro-silicon and ferro-manganese, named by the Collector, being only two of several ..... X X X X Extracts X X X X X X X X Extracts X X X X
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