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1997 (2) TMI 104 - SC - Central ExciseWhether the input of pig iron ultimately bears the full burden of excise duty as leviable on the said pig iron at a stage when the said input results into the final product? Held that:- When the amount of excise duty so recovered on 90 metric tons of steel ingots which had exhausted the entire pig iron, accounted for full duty on the entire quantity of input of pig iron, it is difficult to appreciate as to how the very same quantity of 100 metric tons of pig iron as input can again be subjected to excise duty because a further unintended product of 10 metric tons of steel scrap also resulted from the very same process of manufacture undertaken by the appellant in its steel making furnace. Consequently, it must be held that the impugned demands of excise duty clearly resulted in seeking to recover excise duty twice on the input of pig iron utilised by the appellant in manufacturing the final product of steel ingots and which in the same process as a by-product gave rise to steel scrap which was fully exempted from excise duty on account of the concerned exemption Notification. Thus the impugned demand of duty on the supposed embedded input of pig iron which resulted into the steel melting scrap were clearly unauthorized and incompetent. The appellant is entitled to succeed on this ground alone. In the result, the appeal is allowed.
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