9911796707
TMI Blog1997 (11) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... emand. 2. The appellants are engaged in the manufacture of M.S. Round bars.The officers of the respondent visited the factory of the appellants on 11-3-1987 and found that the appellants are manufacturing M.S. Round bars from the scraps and plates and they were clearing the bars without payment of duty. A show cause notice was issued and in reply to the show cause notice, the appellants submitted that the material used for manufacture of final product is scrap and the appellants are purchasing scrap from the market being re-rollable scrap and the scrap consists of cut pieces of bars, plates, angles etc. and they claimed the benefit of Notification No. 208/83-C.E., dated 1-8-1983. After adjudication, the impugned order was passed. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uts used by the appellants are re-rollable material and under the re-rollable process, the inputs are heated to a specific temperature where the inputs become a rod and loose its identity, thereafter the inputs are passed through re-rollers for getting the desired shape and dimension. In these circumstances, he submits that the inputs are used by the appellants are re-rollable material and not scrap. He also pleaded that the demand is time barred. 4. Shri A.K. Agarwal, SDR was present for the respondent. 5. We have heard both sides. In this case, the benefit of Notification No. 208/83-C.E., dated 1-8-1983 was denied on the ground that the final product that is M.S. Round bars are manufactured from the inputs which are not covere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty has already been paid. THE TABLE S. No. Description of inputs Description of final products (1) (2) (3) 1. ... ... 2. Goods falling under sub-items 6(ii) and (iii), 7(ii), (8), (9)(ii), and (11) of the said Item. Goods falling under sub-items (4)(ii), (6)(ii) and (iii), (7)(ii), (8), (9)(ii), (10), (11), (14) and (16)(ii) of the said Item-flats exceeding 5 mm in thickness; and hot-rolled strips, other than galvanised strips exceeding 5 mm in thickness. 3. ... ... 4. ... ... 7. The N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es as under : EXEMPTION NOTIFICATIONS Ch. 72 IRON AND STEEL PRODUCTS 208/83-C.E., dated 1-8-1983 as amended by 38/84-C.E., dated 1-3-1984, *79/86-C.E., dated 10-2-1986 Iron and steel final products, made from duty-paid inputs on which proforma credit has not been taken, are exempt from basic excise duty. In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts goods of the description specified in column (3) of the Table hereto annexed (such goods being hereinafter referred to as "final products") and falling under Chapte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m in thickness. 3. ... ... 9. The M.S. Round bars manufactured by the appellants admittedly fall under sub-heading No. 7209.90 of the Tariff. The Notification No. 208/83-C.E., dated 1-8-1983 as amended grants exemption of duty if M.S. Round bars manufactured from the inputs falling under sub-heading Nos. 7206.20, 7206.90, 7207.20, 7208.00, 7209.90 and 7210.10. 10. Sub-heading No. 7206.20 includes "Ingots, blocks, lumps and similar forms of steel." Sub-heading No. 7206.90 includes "other", puddled bars, pilings, ingots, blocks, lumps. Similarly the sub-heading No. 7207.20 covers "Blooms billets, slabs and sheet bars of steel." Sub-heading No. 7208.00 of the Tariff covers "Pieces roughly shaped by rolling or for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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