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TMI Blog2013 (9) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... p breaking scrap during the relevant period was exempted from payment of duty – Held that:- The raw materials which were inputs arising out of ship breaking material were cleared at the nil rate of duty and hence the benefit of Notification No. 202/88 will not be available - COMMR. OF C. EX., BHAVNAGAR Versus AHMEDABAD ROLLING MILLS PVT. LTD. [2008 (3) TMI 54 - CESTAT, AHMEDABAD] and Vinubhai Steel Co. Pvt. Ltd. v. CCE, Bhavnagar [2011 (5) TMI 382 - CESTAT, AHMEDABAD] - both the decisions of the Bench will be clearly cover the issue in favour of the Revenue. Assesses would not be eligible for benefit of Notification No. 202/88, the value of their clearances have to be taken into consideration for the purpose of computing aggregate value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led products of iron and steel falling under Chapter 72 of the First Schedule to the Central Excise Tariff Act. 1985. They were using ship breaking material as inputs for manufacturing of their final products, which were exempted under Notification No. 202/88-C.E., dated 10-5-1988 and also availed exemption under Notification No.l/93-C.E., dated 28-2-1993 for the period 1-3-1994 - 31-3-1994. Show cause notices were issued to the respondents denying them exemption under Notification 202/88 on the ground that the inputs i.e. ship breaking materials used for the manufacture of final products were neither specified in the said notification nor duty of excise is paid on the said inputs as the said inputs were cleared by the ship breakers availin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation to Notification No. 202/88 clearly indicates that the stocks/the inputs which are purchased from the open market needs to be considered as duty paid. He would rely upon the judgment of the Hon ble Supreme Court the case of Mohan Steels Ltd. v. CCE, Kanpur - 2007 (207) E.L.T. 21 (S.C.) wherein the benefit of Notification No. 202/88 was extended for the MS Scrap containing broken pieces of bars, angles, old machinery parts, automobile parts etc. He would submit that the judgment as cited by the learned SDR in respect of Ahmedabad Rolling Mills and Vinubhai Steel Co. Pvt. Ltd. will of no use as Hon ble Supreme Court has already held in favour of the assessee in the case of Mohan Steels Ltd. 6. We have considered the submissions mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 might or might not have availed the same, cannot be appreciated. Further, ld. Advocate s contention is that the exemption was available to the goods and materials obtained by breaking up of ships, boats and other floating structures will not apply to all goods of Chapter 89 which covers variety of sea-going vessels. The same will only exempt material obtained from breaking of ships, boats and other floating structures falling under su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 consideration for the purpose of computing aggregate value of the clearances in terms of Notification No. 1/93. The said issue stands agreed to by ld. Advocate. Accordingly, we uphold confirmation of duty of Rs. 4 lakhs (Rupees Four Lakhs only). 7. We also find that in an identical issue, this Bench in the case of Ahmedabad Rolling Mills Pvt. Ltd. has specifically held that the raw materials which were inputs arising out of sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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