9911796707
TMI Blog2000 (2) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 173-Q of the Central Excise Rules and the Additional Collector also ordered the confiscation of Land and Building under Rule 173-Q of the Central Excise Rules, 1944 and gave option to redeem the same on payment of fine of Rs. 30,000/-. 2. Brief facts of the case are that appellants are engaged in the manufacture of Special Brazed Carbide Tipped Tools. The appellant filed classification lists and claimed Nil rate of duty on the basis of Ministry s Circular, dated 3-8-1973 on the ground that no duty was payable on the grinding of unground tool tips. A show cause notice was issued to the appellants on the ground that the appellants were not entitled for the benefit of this Circular, dated 3-8-1973 and as the appellants made wilfully mis- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erein it is held that duty can be demanded only from the date of issuance of show cause notice. He therefore, prays that the appeal be allowed. 5. Learned JDR appearing on behalf of the Revenue submits that appellants were engaged in the manufacture of Brazed Carbide Tipped Tools. He submits this tool consists of two parts, one is Alloy Steel Shank and second Tool Tips. He submits that appellants were purchasing the duty paid tool tips from the market and they were mounting these tool tips in shanks and, thereafter, grinding operations were undertaken as per requirement of the customer. He further submits that the appellants were clearing these tools. He submits that the operation of mounting the tool tips on the shanks and, thereafter gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the record, we find that appellants were purchasing the duty paid tool tips. Thereafter, they were mounting these tool tips on the shanks and this process is called brazing. From the Technical Literature produced by the appellant, the shanks on which the tool tips is to be mounted are of Steel with a particular tensill strength and it is a specialised process. The ratio between thickness of the Carbide Tip and the height of the Shank material beneath the tip should be about 1:3. The Technical literature also provides that for brazing there are special agents are used in this process. After mounting the tool tips on the shank, the grinding process is to be undertaken. By this process the tool tip is grinded as per requirement of the custome ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learing the Brazed Carbide tools. Therefore, this Circular is not applicable in the case of the appellant. 12. The classification lists were filed by the appellants whereby they were claiming the benefit of Circular dated 3-8-73 and in the these classification lists the appellant grinding of ungrounded duty paid tool tips . The appellants had not disclosed the process such as Brazing undertaking by them in the classification list. Therefore, we agree with the findings of the Additional Collector of Central Excise that the appellants had wilfully misstated the facts with intend to evade payment of duty. 13. The ratio of the decision of the Hon'ble Supreme Court in the case of C.C.E. v. Cotspun Ltd., reported in 1999 (113) E.L.T. 353 (SC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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