9911796707
TMI Blog2002 (10) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... r Tariff Item 25 of the first Schedule to the Old Tariff Act. These goods are manufactured from re-rollable materials from ship breaking and from open market. The issue raised in these Appeals is whether the appellants are entitled to exemption under Notification No. 208/83-C.E., dated 1-8-83 as amended. The Appeals are directed against the findings of the Collector that the appellants are not entitled to the benefit of the notification. 2. Apart from the submissions on merits, the appellants contended before us that the Department has wrongly invoked the extended period of limitation in their case and that the demand is barred by limitation. In the case of M/s. Steel Rolling Mill the demand is for the period 1-8-83 to 31-8-87 and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further contend that prior to March, 1986 when the old Tariff Act was in force, there was no distinction between re-rollable scrap/material obtained from ship breaking and from any other source. With the enactment of the new Tariff Act, 1985, a distinction for the first time was drawn in re-rolling material on the basis of the source from which it was obtained (obtained from ship breaking). 4. When Notification No. 208/83-C.E., dated 1-8-83 was amended to incorporate chapter sub-headings of the New Tariff Act. Sub-headings 72.15 and 72.09 which cover re-rollable material obtained from ship breaking, were not included in the table annexed to the notification. It is the case of the appellants that such non-inclusion was an oversight since, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty. 6. The learned Counsel has also submitted that appellants case was covered by the Circulars issued by the Board. The subject notification had incorporated an Explanation that for the purpose of the notification, all stocks of inputs in the country except such stocks as are clearly recognizable as being non-duty paid, shall be deemed to be inputs on which duty has already been paid. The Budget Circular for 1983 had clarified as under :- 3. Under Notification No. 208/83-C.E., certain final products have been fully exempted if they are produced out of specified inputs on which duty has been paid. Inputs purchased from the market have also been deemed to be duty paid vide Explanation to this Notification. Some doubts have since b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t their case regarding time limit is covered by the judgment of the Apex Court in the case of Dhiren Chemical Industries - 2002 (143) E.L.T. 19 and the decision of the Larger Bench of this Tribunal in the case of C.C.E., Vadodara v. Adarsh Re-rolling Mills - 2002 (143) E.L.T. 533 (Tri.-LB) = 2002 (51) RLT 657 wherein it was held that Circulars of the Board are binding on the revenue. The learned Counsel has pointed out the Tribunal's observations relating to eligibility of re-rollable material obtained from the breaking of old condemned railway locomotives equally applied to the re-rollable material obtained from the market or directly from ship breakers. The learned Counsel also submitted that the Bombay Bench of this Tribunal had allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent order was passed by the High Court in 1986. Moreover, the Board had clarified that all inputs from the market, irrespective of old or new, used or fresh were to be treated as duty paid. In particular, it had been clarified that re-rollable materials obtained from cutting and breaking unusable rail lines would be eligible inputs. The same is the position in respect of re-rollable materials obtained from the breaking of old and used rail engines. Re-rollable materials obtained from ship breaking are on a similar footing. The appellants' purchases were also a mixed lot. As noted in the show cause notice itself partly duty paid materials and partly non-duty paid materials. The presumption in the notification is that all inputs in the market ..... X X X X Extracts X X X X X X X X Extracts X X X X
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