9911796707
TMI Blog2010 (8) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 57Q of Central Excise Rules, 1944 - clearances of the goods, attracted Central Excise Duty Period of limitation - once the manufacture of Steel Formers and their clearances for captive consumption at nil rate of duty by availing full duty exemption under Notification No. 67/95-C.E. had been declared to the department in the CL declaration filed on 30th August 1999, for subsequent period they cannot be accused of suppression of fact and accordingly for that period, the longer limitation period would not be available to the department and the duty demand would be time barred. In view of this, the duty demand survives only for the period prior to30th August 1999. - E/497/2005 - 543/2010-EX(PB) - Dated:- 6-8-2010 - Justice R.M.S. Kha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of induction furnace, classifiable as part of induction furnace under heading 85.14 and hence exempt from duty under Notification No. 67/95-C.E. However, according to the department, the Steel Formers are classifiable under heading 73.06 and were not eligible for the exemption under Notification No. 67/96-C.E. It is on this basis that a show cause notice dated 10-7-02 was issued to the appellant for demand of duty amounting to Rs. 95,366/- in respect of clearances of Steel Formers for captive consumption during the period from 1-9-97 to 31-3-01, alongwith interest on duty and also for imposition of penalty on them under Section 11AC. The show cause notice was issued invoking extended period under proviso to Section 11A(1) of the Centra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant information about the manufacture of Steel Formers and their clearance for captive consumption by availing full duty exemption under Notification No. 67/95-C.E., that in any case the issue of Board Circular No. 690/6/03-C.X. dated 20th March 2003 advising the field formations about the classification of Steel Formers under heading 73.06 and the fact that it is not eligible for Notification No. 67/95-C.E., indicates that there was doubt among the field officers about its classification, that in view of this, the longer limitation period under proviso to Section 11A(1) was not available to the department and for the same reason, no penalty was imposable on the appellant under Section 11AC, that in view of this, the impugned order confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on period under proviso to Section 11A(1) is available to the department. 3.2 The Steel Formers are hollow cylindrical profiles which are used in the induction furnace for manufacture of M.S. Ingots. As explained in the Board Circular dated20th January 2003, the Steel Formers are placed in the crucible and while the hollow portion inside the Steel Formers is charged with scrap iron sponge iron etc., the space between the crucible and the Steel Former is packed with ramming mass and asbestos sheets. Though the Steel Former can be used repeatedly, during each melting, a part of it also gets melted and after 10 to 15 charges, the same is totally consumed. 3.2 While Heading 73.06 of the Tariff covers other tubes, pipes and hollow profiles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction furnace and, therefore, the same would not be classifiable as part of the induction furnace under heading 84.14 and are more specifically covered by heading 73.06. This is what has been clarified by the Board in its Circular dated20th January 2003. 3.4 Since, the goods in question are classifiable under heading 73.06, the same would not be eligible for duty exemption under notification No. 67/95-CE, as amended by Notification No. 59.97-C.E. dated 30-8-97 as the inputs required for the final products covered by sub-heading 7206.90 and 7207.90 i.e. M.S. Ingots billets were excluded from the purview of this exemption notification, and the goods in question, being covered by Heading 73.06 were not covered by the definition of capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for non-payment of duty in respect of clearance of Steel Formers for captive consumption. However, once the manufacture of Steel Formers and their clearances for captive consumption at nil rate of duty by availing full duty exemption under Notification No. 67/95-C.E. had been declared to the department in the CL declaration filed on 30th August 1999, for subsequent period they cannot be accused of suppression of fact and accordingly for that period, the longer limitation period would not be available to the department and the duty demand would be time barred. In view of this, the duty demand survives only for the period prior to30th August 1999. However, for quantification of the same and determination of quantum of penalty to be imposed u ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
