9911796707
TMI Blog2000 (11) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... J.S. Agrawal, ld. Advocate, submitted that all the Appellants are engaged in the manufacture of S.S. Pattas/Pattis, circles and utensils falling under Chapter 72 of the Schedule to the Central Excise Tariff Act; that they purchase duty paid S.S. Flats and avail of Modvat Credit of the duty paid under Rule 57A of the Central Excise Rules ; that they, after cutting the said S.S. Flats into small pieces, feed them into Hot Rolling Machines; that S.S. Pattas/Pattis are formed falling under Sub-heading 7219.90/7220.90 of the Tariff attracting 'nil' duty; that these hot-rolled Pattas/Pattis are cold-rolled falling under Sub-heading 7219.00/7220.00 depending on their width; these cold-rolled Patta/Pattis are cut into circles classifiable under Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal) (iii) National Steel Industries Ltd. v. CCE., Indore, 2000 (41) RLT 156 (CEGAT) 3. The ld. Advocate also submitted that the duty has also been demanded in respect of waste and scrap though the same is exempted by Notification No. 89/95-C.E., dated 18-5-1995; that the duty has been quantified taking into account the Value of S.S.Patta/Patti in the open market without deducting the element of excise duty. In this regard he relied upon the decision of the Larger Bench in the case of Srichakra Tyres Ltd. v. C.C.E., Madras 1999 (108) E.L.T. 361 (Tribunal-LB) = 1999 (32) RLT 1 (CEGAT-LB). Finally he submitted that there was no suppression on the part of the Appellants as they had filed declarations under Rule 173B of the Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al of cold-rolled Pattas/Pattis for manufacture of circle shall amount to removal of goods for the purpose of payment of duty of excise in view of the provisions of Rules 9 and 49 of the Central Excise Rules. We also agree with the Ld. Advocate that for determining the assessable value, element of excise duty has to be deducted from the market price as held by the Larger Bench of the Tribunal in the case of Sri Chakra Tyres, supra. We observe that the question whether the process of cold rolling of the hot-rolled products amounts to manufacture has not been considered by both the lower authorities. This issue is very vital which goes to the root of the matter. Accordingly we remand all these matters to the Adjudicating Authority with direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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