TMI Blog1996 (11) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant filed classification list claiming the benefit of Notification 208, dated 1-8-1983. This Notification exempted inter alia the goods of the kind manufactured by the appellant from duty dutiable of subject to the proviso contained in the Notification reads as follows : Provided that such final products are made from any goods of the description specified in the corresponding entry in column (2) of the said Table (such goods being hereinafter referred to as inputs ) and falling under the said Item on which the duty of excise leviable under the said Act, or the additional duty leviable under the Customs Tariff Act, 1975 (51 of 1975), as the case may be, has already been paid. Provided further that no credit of duty paid on the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to say that the Collector s order is limited to demand on so much of the finished product which could be said to have been manufactured out of rerollable scrap directly supplied by ship breakers to the appellant at a time when no duty was payable on this scrap, the Advocate agreed that this was the case. If this is so, we fail to see how it can be said that the scrap is not perceivable as non duty paid. When the ship breaker cleared the goods after breaking his ship he cleared them without paying the duty. It is not in dispute that these goods were directly received by the appellant from the ship breakers. Hence the identity of these goods as material obtained from ship breaking continued undisturbed throughout the transit. Taking these f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proviso to Rule 56A(5)(i)(b). The proviso is reproduced below : Re-rollable scrap (fresh unused as well as old and used) purchased from outside and lying in stock with the re-rollers on or after 1-8-1983 would be deemed to have paid duty at the rate of Rs. 330/- (basic) plus Rs. 33/-(Special) per metric tonne and credit of duty in respect of such re-rollable scrap used without undergoing the process of melting in the manufacture of goods falling under Item No. 25 of the First Schedule to the Central Excises and Salt Act, 1944 may be allowed at the rate of Rs. 330 (basic) plus Rs. 33 (Special) per metric tonne without production of documents evidencing the payment of duty. No such credit shall, however be allowed in respect of any input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g such credit as they could not get gate passes for the re-rollable material. We do not find it possible to agree that the direction issued by the Government would have any applicability to the Notification. We also cannot agree that any person who reads these notifications would have reasonably come to the conclusion that the direction would have relevance to the notification. Reference to Notification 208/83 paragraph 3 of the circular is with regard to the credit which could be taken on inputs used for the final products to which the notification applies. The notification states in no uncertain terms that stocks which are clearly recognised as non duty paid will be excluded from the general category of stocks in the country which are con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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