9911796707
TMI Blog2013 (9) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian origin procured indigenously free of excise duty as well as of foreign origin imported free of customs duty. The dispute in this case is in respect of duty chargeable on DTA clearances made during June 1997 to November 1997 period. The appellant had made DTA clearances of galvanised pipes by availing duty exemption under Notification No. 8/97-C.E. under which the duty chargeable on the goods cleared into DTA as per the provisions of the EXIM Policy is the duty chargeable in respect of like goods manufactured and cleared by the DTA units, subject to condition that the goods cleared into DTA have been manufactured wholly out of indigenous inputs. The department was of the view that the appellant were not eligible for the exemption unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while holding that the appellant was not eligible for Notification No. 8/97-C.E., held that part of the demand is time-barred, as only normal limitation period would be available and he also reduced the penalty to Rs. 1,50,000/-. Against this order of the Commissioner (Appeals), while the appellant-company has filed the appeal No. E/476/2005, the Department has filed Appeal No. E/134/2005. In the department's appeal, the department has challenged the Commissioner (Appeals)'s order reducing the penalty on the appellant-company and also the order holding that part of the duty demand is time-barred. 2. Heard both the sides. 3. Shri Mayank Garg, Advocate, the learned Counsel for the appellant-company, pleaded that the department does not disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dance with the EXIM Policy would also be eligible for Notification No. 2/95-C.E. under which the duty payable would be 50% of the aggregate of the duties of the customs, but in the impugned order the eligibility of the appellant-company for this notification exemption has not been considered at all. With regard to the Revenue's appeal, Shri Garg while conceding that the show cause notice dated 4-2-1998 issued for recovery of allegedly short paid duty for the period from July 1997 to November 1997 is within time, pleaded that in the circumstances of the case, no penalty is imposable and hence there is no merit in the Revenue's plea for enhancement of the penalty. 4. Shri A.K. Jain, the learned Jt. CDR while defending the Commissioner (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d confirmed by the Adjudicating Authority was time-barred, there was no justification for reduction of penalty by the Commissioner (Appeals). He, therefore, prayed for dismissal of appeal by the appellant-company and acceptance of appeal filed by the Revenue. 5. We have considered the submissions from both the sides and perused the records. 6. The point of dispute in this case is as to whether the appellant during period from July 1997 to November 1997 were eligible for Notification No. 8/97-C.E. in respect of their DTA clearances. The benefit of Notification No. 8/97-C.E. would be available in respect of DTA clearances made in accordance with the provisions of EXIM Policy, only if the goods have been made out of the inputs of the Indian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of galvanised pipes and that it is not possible to say as to which quantity of galvanised pipes was manufactured out of indigenous zinc and which quantity of galvanised pipes were manufactured out of imported zinc. It is not the case of the appellant that they had separate zinc kettles for use of imported zinc and indigenous zinc. In view of this position, we are of the view that the benefit of Notification No. 8/97-C.E. has been correctly denied. However, we find that the department has not considered the appellant's eligibility for Notification No. 2/95-C.E. under which the effective rate of duty is 50% of the aggregate of duties of customs and after denying the benefit of Notification No. 8/97-C.E., has simply charged duty at the full ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
