TMI Blog1998 (7) TMI 236X X X X Extracts X X X X X X X X Extracts X X X X ..... DSP, Visakhapatnam Steel Plant which are all PSU. Demands relate to mostly these parties. Others are for mining equipments supplied to Coal India Ltd. which is also PSU. 3. He submitted that pricing of products for all the contracts with the PSU s Steel Plants pertaining to the demands supplies started in early seventies on the basis of letter of Intent and final price was settled through BPE (A Govt. Agency) or Arbitration by the Arbitrator appointed by Govt. of India and contract was finalised in some cases on the subsequent dates. The contracts were mostly subject to escalation. Escalation was calculated as per provision in the contract on the basis of data collected from different sources like RBI Bulletin, Minimum Wages Circular issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to SCN date - Rs. 1.45 crore Settled and paid prior to date of adjudication order - Rs. 5.76 crore Rs. 7.21 crore Settled and paid subsequent to date of adjudication order - Rs. 3.59 crore Total payment made - Rs. 10.80 crore Duty not payable - 2.31 crore Rs. Total - Rs. 13.11 crore 6. He also submitted that the rest of demand of Rs. 2.31 crore is not payable because of the following : (a) Demand was estimated as per show cause notice. (b) Rate of duty has been indicated as varying from 1 to 15%, 5 to 15% etc. and not a specific rate as per date of clearance. (c) M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated in reply that between 1975 and 1986 when the Tariff item 68 was in existence, the rate of duty has varied from year to year starting from one per cent and reaching 12 per cent and the goods classified under T.I 68 were removed from the factory of the HEC under cover of Gate of passes during the period 1-3-1975 to 28-2-1986. The rate of duty required to be paid to the department on account of escalation amount received should be the rate prevalent on the original dates of removals from the factory irrespective of the dates of settlement of escalated amount later. The department having calculated the amounts due to be paid by HEC on the basis of average rate of duty obtaining during a period will have to be correctly calculated based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. Counsel has stated that the copies of the contracts had been furnished and clearances were made on G.P. 1s with reference to the approved classification lists and ld. DR has not been able to contradict it or show that this was not so. However, the appellant s contention that the assessments were provisional goes against their own plea of time-bar; at the same time, the ld. DR was unable to show as to which of the assessments, if any, were provisional and which had already been finalised according to the department. It is evident that the duty could be demanded without reference to time factor only in respect of those clearances the assessments of which could be shown to be provisional and the demand was required to be restricted to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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