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TMI Blog2015 (4) TMI 931X X X X Extracts X X X X X X X X Extracts X X X X ..... ited by the Ld. DR is not applicable to the facts of this case, as the dispute in this case is as to whether the process undertaken by the appellant is process of hot rolling or cold rolling and this point has to be decided on the basis of the criteria prescribed in this regard in the HSN explanatory notes. No tests have been done to establish as to whether the Appellant s final product has the characteristics of cold rolled product. In view of this, we hold that the impugned order is not sustainable. - Decided in favour of appellant. - Excise Appeal No. E/2100-2101/2006 -Ex[DB] - Final Order No. 50711-50712 /2015-Ex(Br) - Dated:- 26-2-2015 - Hon'ble Mr. Rakesh Kumar, Member (Technical) And Hon'ble Mr. S.K. Mohanty, Member (Judicial),JJ. For the Appellants : Mr. Sudip Singh, Advocate For the Respondent : Mr. R. K Grover, DR ORDER Per Rakesh Kumar (for the Bench): The appellant have their factory at Nasrali road, Mandi Govind Garh. The appellant under their letter dated 30.11.1993 addressed to the Assistant Commissioner Central Excise Patiala informed that they intend to reroll the hot rolled flats of uneven having thickness less than 4.75 MM and u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 11AB and also for imposition of penalty on the appellant under section 11AC. The Show Cause Notice also sought imposition of penalty under Rule 209A of the Central Excise Rule 1944 on Shri Raj Kumar, Partner, of the appellant firm. 1.2 The Show Cause Notice was adjudicated by the Commissioner vide order-in-original dated 30.01.2006 by which the Commissioner holding that the process being undertaken by the appellant is not hot rerolling process and the goods which emerged by these process are cold rolled flat Products classifiable under heading 72.11 of the Central Excise Tariff, confirmed the duty demand of ₹ 1,18,54,560/- , after giving cum duty benefit, along with interest on it under section 11AB and beside this, while penalty of same amount was imposed on the appellant firm under section 11AC, penalty of ₹ 10,00,000/- was imposed on Shri Raj Kumar under Rule 209A of Central Excise 1944. The duty demand was confirmed against the appellant firm by invoking Rule 8 under proviso to section 11A(i). 1.3 Against this order of the Commissioner these appeals have been filed. 2. Heard both the sides. 3. Sh. Sudip Singh, Advocate, the Ld. Counsel for the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rature of metal is termed as hot working process and those undertaken below the re-crystallization temperature are termed as cold working process, and as per this book, the re-crystallizing temperature for steel is of the order of 1000oC and, therefore, working below that temperature would result in cold rolled product only; and (e). scrutiny of the purchase invoices produced by the appellant in respect of the purchase of the machinery revealed that four rolling stands had been supplied by M/s Kalgidhar Foundry and M/s Agro Industries, Mandi, Govindgarh and inquiry with the suppliers revealed that the rolling stands supplied were only suitable for cold rolling as in case of hot rolling, the RPM should be more than 180; He, therefore, pleaded that the goods being manufactured by the appellant were cold rolled products, and that though prior to starting the manufacturing process, the appellant had intimated the Department about their process giving the flow chart, in that flow chart they had not revealed the relevant facts and had concealed the fact from the Department that the rerolling was to be done at temperature below 1000oC, and thus, the appellant have suppressed the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g and by contrast the products obtained by hot processes show almost regular grains owing to re-crystallization. According to these explanatory notes, the cold worked/ cold rolled products can be distinguished from hot rolled products by the criterias such as: (a) The surface of cold roll products has better appearace than that of the products obtained by hot process and never has a layer of scale; and (b) The dimensional tolerances are smaller for cold work products. The HSN Explanatory note of HSN chapter 72 also mention that very light cold rolling process (known as a skin pass or pinch pass) which is applied to certain hot rolled flat products without significant reduction of their thickness does not change their character of finished hot rolled products, and this cold pass under low pressure acts essentially on the surface of the products only, whereas cold rolling in true sense (also known as cold reduction) changes the crystallization structure of the work piece by considerably reducing its cross-action. 6.1 Since heading 7211 of the central excise tariff is based on HSN heading 72.11, in terms of the well settled law on this point, the HSN explanatory notes would h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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