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TMI Blog1995 (8) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... r own steel plant under Chapter X procedure without payment of duty in terms of Notification No. 217/86 (as amended). In terms of Notification No. 175/88, dated 13-5-1988, tubes were eligible for exemption from duty in excess of Rs. 800/- PMT provided they were made from hot rolled strips and in excess of Rs. 1000/- PMT if made from cold rolled strips produced in India. The Notification No. 175/88 was amended by Notification No. 63/91-C.E., dated 25-7-1991 to incorporate an additional condition that the benefit of exemption from payment of duty in excess of Rs. 800/- PMT or Rs. 1000/- PMT as the case may be, could be availed if tubes and pipes were made from hot rolled or cold rolled products on which duty of excise leviable under the Sched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter X procedure. 2. Appearing on behalf of the appellants Shri Ravinder Narain, Ld. Sr. Advocate stated that the Collector s finding that HR/CR strips received by the Tube Division of the appellants from their own steel plant for captive consumption under Chapter X procedure and in terms of Notification No. 217/86-C.E., dated 2-4-1986 could not be deemed as inputs on which duty had already been paid was erroneous since the expression already paid has been interpreted by Courts to mean contracted to be paid or ought to have been paid . In support of his contention he cited the judgment of the Patna High Court in the case of Tata Yodogawa Limited v. Union of India, reported in 1987 (32) E.L.T. 521, and also the Tribunal s order in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which duty of excise leviable under the Schedule to the Central Excise Tariff Act, 1985 or the additional duty leviable under the Customs Tariff Act, 1975 as the case may be, had already been paid. 5. We find that in the case of Tata Yodogawa Limited v. Union of India (supra) the Patna High Court has held that the benefit of the Notification No. 66/73-C.E., dated 1-3-1973 which exempted the ingots manufactured from fresh unused steel metal scrap on which the appropriate duty of excise leviable had already been paid was admissible to the assessee even when the Ingots were manufactured out of steel melting scrap which was exempt under Notification No. 150/77-C.E., dated 18-6-1977 since the expression already paid has to be in interpre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n paid or contracted to have been paid. Since such duty in terms of exemption notification is nil these goods cleared without payment of anyduty therefore can be taken to be duty paid goods. In that view of the matter, therefore the appellants are entitled to the benefit of notification under Serial No. 4 of the Notification No. 101/66. We, therefore, following the ratio of the judgment of Hon ble High Court of Patna as above, allow the appeal and set aside the order of the lower authority. In view of what we have held above, we do not find it necessary to give our findings on the other points raised. 8. We, therefore, follow the judgment of the High Court of Patna and the Tribunal s order extracted above and allow the appeal setting asi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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