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TMI Blog1991 (4) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... materials included, inter alia, bazar scrap, i.e. old and used iron and steel scrap. Apart from availing the benefit of this aforesaid Notification, he also availed of the concessional rate of duty under Notification No. 237/75-C.E., dated 9-12-1975. The appellant was accorded approval to manufacture steel ingots from steel melting scrap or steel scrap brought under Rule 56A subject to the observance of the procedure detailed in Rule 56A of Central Excise Rules, 1944. 1.1 Later on after scrutiny of the records of the firm by the Central Excise Officers, it was alleged inter alia by the Department, which is in dispute now before the Tribunal, as follows :- (i) The appellant has evaded duty on 1047.973 M.T. of steel ingot by irregularly a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set-off to the duty paid on such scrap , i.e. the two types of scrap mentioned earlier in the Notification. 2.1. As regards the controversy on Notification 237/75, the Collector has held that in giving the benefit of exemption Notification 237/75, Rule 56A procedure has not been adopted or permitted and, therefore, if any assessee elects to avail of the benefit of concessional rate of duty under the said Notification, such an assessee automatically gets excluded from the purview of the benefit of Rule 56A in respect of such steel ingot. In short he has held that the benefit under Rule 56A and the scheme of exemption under Notification 237/75 are independent of each other. 3. The learned Advocate, Shri S. K. Roy Choudhary appearing for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appeal :- Representations have been received from secondary re-rollers of iron and steel products to the effect that they are not able to take full advantage of the set-off or exemption contemplated in Notification Nos. 89/62 and 132/62 respectively as it is difficult for them to obtain and produce necessary proof of payment of duty on the articles or scrap purchased and used by them for further re-rolling. It is reported to be particularly difficult for those re-rollers who get their supply of iron and steel material from the market or the stockists and not from the primary producers. 2. The representations have been carefully considered by the Board. In the beginning when the pre-excise stock of iron and steel products also ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid unused steel scrap of any type. The extent of exemption is equivalent to the duty of excise, proved to the satisfaction of the proper officer, to have been paid on such scrap (emphasis supplied). The words emphasized above have a special significance, it has to be proved categorically by an assessee availing of the aforesaid exemption that the aforesaid types of scrap mentioned in the Notification have paid duty and then only, set-off of such duty paid on such scrap can be allowed from the duty payable on steel ingot manufactured out of such unused melting scrap or unused steel scrap. It is not the contention of the appellant that the bazar scrap used by them in the manufacture of the steel ingot is unused steel scrap or unused steel m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ability of Notification 144/75 is concerned. 6. As regards the second controversy of Notification No. 237/75, the learned Advocate, Shri S. K. Roy Choudhary for the appellant has urged that there is no restriction in the Notification No. 237/75 that if a manufacturer avails of the benefit of set-off under Notification 144/75 or the proforma credit procedure under Rule 56A, he would not be entitled to the benefit of Notification No. 237/75. There is neither any provision nor is there any such restriction in Notification No. 144/75. With regard to availing of the benefit of Notification No. 237/75, he submits that the Notification 237/75 being independent of Notification No. 144/75 and since the terms of the former Notification No. 237/75 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old iron or steel melting scrap; (b) a combination of the material referred to at (a) above with fresh unused steel melting scrap on which the appropriate duty of excise has been paid; and (c) iron in any crude form falling under Item No. 25 of the said First Schedule on which the appropriate duty of excise has been paid in combination with the materials referred to at (a) and (b) above. 7.1. Bazar scrap is nothing but old iron and steel melting scrap referred to (a) above. Therefore, all the conditions of Notification No. 237/75, dated 9-12-1975 are apparently fulfilled by the appellant. Reliance placed by the appellant on the citations mentioned supra is also correct. Duty paid character of the scrap is not altered simply because se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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