9911796707
TMI Blog2011 (5) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... er: Mrs. Archana Wadhwa: After hearing both sides duly represented by Shri B.L. Narasimhan, ld.Advocate appearing on behalf of the appellant and Shri S.K. Mall, learned SDR appearing on behalf of the Revenue, we find that the appellants are engaged in manufacture of various Rolled products i.e. Bar, Rod etc. of iron and steel falling under Chapter 72 of the Schedule to Customs Excise Tariff Act, 1985. The appellants during the period from 1.3.93 to 28.2.94, were availing exemption Notification No.202/88-CE, dt.20.5.88 and from 1.3.94 onwards availed SSI Notification No.1/93-CE, dt.28.2.93. 2. Notification No.202/88-CE dt.20.5.88 exempts the specified final products subject to condition that such final products are made from the spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f demand of duty of Rs.4,62,516/- (Four Lakhs, Sixty Two Thousands, Five Hundreds and Sixteen only). 3. The said Show Cause Notices were adjudicated by Additional Commissioner, who observed that during the material period, the goods and materials of ship breaking yard of Chapter 72, 73 obtained by breaking up of ships, boats and other floating structures remained under exemption by virtue of Notification No.44/93-CE, dt.1.3.93 and as such, the inputs were clearly recognizable as being non-duty paid/exempted. As such, the appellants had failed to satisfy the above condition in which case, the benefit of Notification No.202/88 was wrongly availed by them and the Central Excise duty is required to be confirmed against them. 4. As a con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n held to be exempted, he submits that Sr.No.37 grants exemption to goods and materials of Chapter 73 obtained by breaking up of ships, boats and other floating structures. He submits that the ships, boats, floating structures are covered by Chapter 89 of schedule to Customs Excise Tariff Act, 1985. Further, by drawing our attention to Chapter 89, he submits that the same has various sub-headings covering crews, ships, boats, fishing vessels, yatchst, tugs, and other vessels. As such, he submits that if the scrap obtained is not from ships, boats, or floating structures, but from yatchst, tugs, pusher crafts, dredger etc, the same will not be exempt under Notification No. 45/93-CE. As such, he submits that the inputs may come from breaking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , has already been paid stand settled. The inputs used in the manufacture of final product, under the claim of exemption benefit of Notification No. 202/88 are required to be duty paid. Admittedly, the appellants have used the ship breaking material as their input. The said ship breaking material was exempted from payment of duty in terms of Sr.No.37 of Notification No. 44/93. The said exemption was available to the goods and material of Chapter 73 obtained by breaking up of ships, boats and other floating structures. There was no condition attached to the availability of the exemption in terms of said notification. As such, ld.Advocate s submission that the said notification was conditional and as such the manufacturer of the raw material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed said exemption. 9. We also note that a clear allegation to that effect was made in the Show Cause Notice with the virtual assertion that the said materials were cleared by manufacturer without payment of duty. The appellants have not made any efforts to bring on record the fact of payment of duty in respect of such materials by manufacturer. Under these circumstances, we find no infirmity in the views adopted by the lower authority and accordingly uphold the demand of duty of Rs.11,63,337/- (Rupees Eleven Lakhs, Sixty Three Thousands, Three Hundreds and Thirty Seven only). 10. If the above clearances are being held as not eligible for benefit of Notification No.202/88, the value of their clearances have to be taken into consid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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