9911796707
TMI Blog2001 (1) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... . Channels, M.S. Angles and M.S. Joints falling under Chapter Sub-heading No. 7216.10 of the schedule to the Central Excise Tariff Act, 1985. The goods manufactured by them are notified under Notification No. 31/97-C.E. (N.T.), dated 1-8-1997 for the purpose of levy of duty on them under Section 3A of the Central Excise Act, 1944. The Commissioner of Central Excise on determining their annual capacity of production fixed an amount of Rs. 7,81,625/- per month being the duty payable by them under Rule 96ZP(3) of the Central Excise Rules, 1944 as per the declaration and the parameters of their re-rolling machine declared under Rule 3 of the Hot Re-rolling Steel Mills Annual Capacity Determination Rules, 1997. 2. In terms of the Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 97 and January 98. Another notice dated 6-8-1998 was issued to them demanding a differential duty of Rs. 12,88,827/- for the period Feb 98 to June 98 on the same ground. Appellants contested these show cause notices but the Commissioner of Central Excise, Hyderabad-I vide his aforestated two orders both dated 30-10-1998 confirmed the duty amount of Rs. 38,53,498/- on them apart from imposing a cumulative penalty of Rs. 40,28,498/-. 4. The present appeals are against the aforestated two orders passed by the Commissioner of Central Excise, Hyderabad-I. 5. We have heard Shri C. Natarajan, Senior Counsel, assisted by Shri N. Venkatraman, Counsel for the appellants and Shri S. Kannan, JDR for the respondents. 6. Learned Senior Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the imposition of penalty under Section 11AC of the Act under Rule 173Q of the Central Excise Rules, 1944. 7. Ld. JDR appearing for the Revenue, however, reiterates the findings of the lower authority and submits that notification No. 30/97-C.E. (N.T.), dated 1-8-1997 as amended by Notification No. 31/97-C.E. (N.T.), dated 1-8-1997 as amended are guiding notifications for interpreting the exemption notification under consideration. He states that both these non-tariff notifications pertained to duty on the basis of Capacity of production and flow out of Hot Re-rolling Steel Mills Annual capacity Determination Rules, 1997 (compounded levy scheme). He stated that non-tariff notification No. 31/97 pertains to hot re-rolling products of non-a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 of 1986) specified in the corresponding entry in column (2) of the said Table, from so much of the duty of excise leviable thereon which is specified in the said Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table :- Provided that the exemption contained in this notification shall apply only to the goods manufactured or produced prior to the 1st day of August, 1997 and cleared on or after that date from an induction furnace unit, or as the case may be, a hot re-rolling mill. TABLE S. No. Sub-Heading No. Description of goods Rate of duty (1) (2) (3) (4) 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (N.T.). The Notification No. 50/97-C.E. is not a non-tariff notification and as we can see, the same is issued under Section 5A of the Central Excise Act, 1944. As it is well settled that we cannot import any unintended supposed intention into the language of the exemption notification and the same has to be interpreted strictly, we do not find any words in the language of the notification which would lead us to conclude that the same is applicable only in respect of the goods cleared under the compounded levy scheme. Our this view is further supported by the fact that under the proviso to this notification, the exemption is made applicable to the goods manufactured or produced prior to 1st September, 1997 and cleared on or after this dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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