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TMI Blog1986 (2) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... tion list on 1-4-1979 effective on the same date. This list contained, among others, two products, namely, Star Wood Primer White and Pink and Indeco N.C. Primer Redoxide . They claimed that these two products (about others there is no dispute) were assessable at concesstonal rate of duty of 10% under Notification No. 220/77-C.E., dated 15-7-1977. The Superintendent approved the classification list on 11-4-1979. However, on 28-12-1979 the Superintendent issued a show cause notice asking the appellants to show cause why the classification of the said two products should not be amended, making them ineligible to the concessional rate of duty under Notification No. 220/77-C.E. 3. On 11-9-1980 the Assistant Collector passed orders holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts to possess anti-corrosive properties to entitle them to the concessional rate. It is enough if the product is known as primer and used as such. They further relied on 1983 E.L.T. 1249 CEGAT in the matter of Gujarat Machinery Manufacturers Ltd., Karamsad, Gujarat v. Collector of Central Excise, Baroda and pleaded that even if duty was payable by them, it will be payable for six months before the date of the order and not from the date of show cause notice. 5. The learned JDR opposing the arguments submitted that Starwood Primer is not a primer metal and is not covered by Notification No. 220/77-C.E. Indeco N.C. Primer was not a primer and could not be used as first coat. Even if it is primer it was not covered by Notification No. 220/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Primer. (b) Direction for use : Surface should be suitable primer with redoxide or two pack primers (see pamphlet). Dents should be filled up with INDECO N.C. Putty. The surface thus prepared can be wet sanded after 2-1/2 - 3 hours and care should be taken to make the surface moisture free." 8. The Notification in question mentioned metal primer and oxide . From what has been stated above it appears that before Indeco NC primer could be used the surface is to be prepared with redoxide or primers and putty. It appears that in view of this Indeco NC primer could not be considered as a metal primer. Therefore, the argument that the Notification does not prescribe anti-corrosion properties as a qualification is not helpful to the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held by the authorities below. 11. This would take us to the next question as to whether duty could have been charged for a period of six months prior to the show cause notice. The appellants submitted that the show cause notice issued to them threatened only the re-classification of the goods and recovery of the dues and that Rule 10 of the Central Excise Rules was not invoked. The relevant part of the show cause notice is as follows :- Now, therefore M/s. Comet Paints Ltd., V.V. Nagar, Anand are called upon to show cause to the Assistant Collector of Central Excise, Anand within 30 days of the receipt of this notice as to why the classification of the said products should not be amended as mentioned above as provided in Rule 173( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng payment of differential duty. However, recoveries of such amounts can be made only in respect of a period of 6 months preceding the date of the order, i.e. 30-4-1982, as determined with due regard to the provisions of Rule 11 or Section 11A as applicable in each assessment. The Central Excise authorities shall re-calculate the amount of short-levy in the light of these observations and communicate the figures to the appellants within 3 months from the date of communication of this order." 14. In the present case there was no show cause notice under Rule 10. Keeping in mind the extract of the CEGAT order (supra) and also the order of the Kerala High Court in Good Shephered Rubber Company, Palghat v. Inspector of Central Excise, Palghat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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