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2022 (8) TMI 641 - HC - Central ExciseClassification of goods - Mis-rolls - Whether the Learned Tribunal without going into the merits of the case and without even seeing the documents was right in simply passing the order on the basis of the ratio laid down in the decision of the Tribunal in Jai Raj Ispat Limited –Vs- Commissioner of Central Excise, Hyderabad-IV [2006 (7) TMI 210 - SUPREME COURT]? - misrolls arising during the process of manufacture of CTD bars would fall under tariff entry 72.04 or 72.07 or not? - recovery of CENVAT Credit - interest - penalty - HELD THAT:- The Tribunal in the impugned orders has left open the classification issue. If such be the circumstances, the learned Tribunal ought to have made an endeavour to consider the facts of the case, specially when the allegation in the show cause notice issued by the adjudicating authority was that the assessee does not process furnace for melting such waste and scrap and it is practically impossible for the assessee to manufacture MS Flat/Bar, MS Angle, MS Channel, MS Round etc. from the said items which are various types of scraps. Assessee contended that, the demand notice has been issued without any enquiry and investigation in the factory of the assessee and the burden of proof is on the department to show that the goods purchased from SAIL and others have been disposed off without use in their factory. Further, it was contended that the department does not dispute payment of duty on goods purchased from SAIL and others, payment of duty on the final products manufactured by them, there was no revenue loss and therefore, proceedings could not have been initiated against the assessee. The substantial questions of law does arise for consideration in these appeals, more particularly, the question whether the Tribunal without going into the merits of the case and without noting the documents was right in simply passing the order on the basis of the decision in the case of Jai Raj Ispat Ltd. [2006 (7) TMI 210 - SUPREME COURT] and whether the learned Tribunal failed to note that the judgment in the case of Jai Raj Ispat Ltd. was pertaining to a classification issue. The appeals are allowed and the substantial questions of law are answered in favour of the revenue - matters are remanded to the Tribunal to consider the cases afresh and after taking note of the factual position, as well as the legal and various decisions that may be relied upon. The learned Tribunal shall pass a speaking order on merits and in accordance with law.
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