9911796707
TMI Blog2008 (6) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant. Dr. Gautam Ray, Jt. CDR, for the Respondent. [Order per: Chittaranjan Satapathy, Member (T). - Heard both sides. 2. The impugned Order-in-Original dated 20-1-2006 has been passed by the Commissioner of Central Excise, Jamshedpur against the Appellants under which a duty-demand of Rs. 117,74,06,299.44 (Rupees one hundred seventeen crores seventy-four lakhs six thousand two hundred and ninety-nine and paise forty-four) and a penalty of equivalent amount of Rs. 117,74,06,299.44 paise has been imposed upon the Appellants. In addition, interest has also been levied under Section 11AB of the Central Excise Act, 1944, which has not been quantified. 3. The Adjudicating Commissioner has confirmed the above demand of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no avail. The said Circular dated 26-2-03 reads as under :- "I am directed to say that a doubt has arisen regarding the meaning of word "Integrated Steel Plant" given in the explanation to the exemption Notification No. 13/2000-C.E., dated 1-3-2000. The explanation states that to be designated as an "Integrated Steel Plant" the manufacture should start from the stage of the ore in the plant premises itself. The dispute now centres around the interpretation of the word "ore". Trade has represented that the raw 'ore' is excavated through a mining process and mines can never be a part of an integrated steel plant because of so many reasons like, safety (ores have to be extracted through blasting) and logistics. Therefore the normal practi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case due to lack of basic understanding as to what is an integrated steel plant on the part of a Jurisdictional Commissioner who is in charge of the excise work of an integrated steel plant. It is common knowledge that an integrated steel plant carries all the functions for primary steel production within its premises which would necessarily include - (i) iron-making (extraction of iron from iron ore) to steel-making (conversion of iron to liquid steel); (ii) casting (solidification of liquid steel); (iii) rough-rolling (reducing size of blocks into slabs/blooms); (iv) product-rolling (production of plates, sheets, billets, rods and other shapes). Various activities from iron-making through steel-making and product-rolling a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... integrated steel plant. 7. Moreover, the clarification issued by the Board under its letter dated 26-2-03 is very much relevant for the past period during which the Notification No. 13/2000-C.E. was in existence. The Adjudicating Commissioner is not correct in holding that the clarification is only prospective in nature and would not apply to the past period. The clarification seeks to clarify the legal position as it existed from the date of issue of the notification and there is no reason as to why the benefit of the same cannot be allowed to the Appellants. 8. The Appellants have also argued that a subsequent show cause notice dated 23-2-06 issued by the same Commissioner takes a contrary stand that ore concentrate is not a diff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the Adjudicating Commissioner's jurisdiction. There does not seem to be any record that such an exercise has been done. There was a time when the training of an I.R.S. (Customs and Central Excise) Officer was not considered complete unless the was familiar with the manufacturing and excise system of an integrated steel plant and an integrated textile mill. It now seems that even at the Commissioner's level, the Officers are not able to recognise an integrated steel plant, when they see one. It is high time that the Board gives importance to an Officer's training, experience, efficiency, expertise and competence while posting him to a specific charge rather than merely going by the number of years spent in different classes of cities. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
