9911796707
TMI Blog2005 (4) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. In appeal No. E/1407/2004-NBC which is against the order of the Commissioner of Central Excise, Raipur, the facts in brief, are that the appellants are manufacturer of H.R. strips of non-alloys steel and M.S. steel tubes. The H.R. strips manufactured by the appellants are notified under Section 3A of the Central Excise Act w.e.f. 1-9-97. The appellants in their strip mill section manufactured H.R. strips which were cleared by them under notification No. 67/95-C.E. dated 16-3-1995 to their tubes mill section where these strips were used for the manufacture of tubes. Central Excise officers visited the factory of the appellants on 6-2-1998 and found that the appellants were not entitled for exemption under Notification No. 67/95-C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that the appellants are manufacturing H.R. strips and w.e.f. 1-9-1997 they were covered by the Compounded Levy Scheme notified under Section 3A of the Central Excise Act. He also agreed that w.e.f 1-9-1997 notification No. 67/95-C.E. was not applicable on the H.R. strips cleared by the appellants for manufacture of tubes. He, therefore, pleaded that he is not contesting the demand of duty on the H.R. strips under Compounded Levy Scheme. He, however, pleaded that the appellants were entitled to the Modvat credit on the duty paid H.R. strips under Compounded Levy Scheme in view of the Notification No. 58/97-C.E. dated 30-8-1997 at the rate of 12% of the price. Therefore, the appellants may be allowed credit on H.R. strips cleared to their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bate of duty of Rs. 2,52,603/- for the period of closure of mill during 1997-98. Appellants filed a refund claim of Rs. 2,52,600/- which was sanctioned by the Assistant Commissioner. Department filed an appeal before the Commissioner (Appeals) and the Commissioner (Appeals) allowed the appeal of the department on the ground that the appellants were required to pay duty of Rs. 9,22,000/- during 97-98 and after allowing rebate of Rs. 2,52,603/- the appellants have short paid duty of Rs. 6,69,397/-. The question of granting of refund arises only when the appellants would have paid duty in excess of the liability determined by the Commissioner. 7. Shri Asthana, learned Advocate, appearing for the appellants, pleaded that the abatement all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scation. The same is the case in respect of the tubes. We find that H.R. strips weighing 41.450 MT cleared from strip mill to tube mill without payment of duty are correctly liable for confiscation as these were cleared without payment of appropriate duty. We, therefore, set aside the confiscation of H.R. strips weighing 45.505 MT seized from the strip mill section and 138.180 MT of steel tubes and pipes seized from pipe division. However, we confirm the confiscation of H.R. strips weighing 41.450 MT lying in tube section which were cleared from strip mill section without payment of duty. However, considering the circumstances of the case, we reduce the redemption fine to Rs. 50,000/-. For determining the duty liability on H.R. strips and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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