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TMI Blog2000 (3) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... nt motor vehicles. For the manufacture of body panels, they imported cold-rolled (CR) steel sheets. They were availing exemption in respect of these C.R. sheets under Notification No. 522/86-Cus., dated 31-12-1986 which granted partial exemption of basic customs duty and whole of the additional customs duty to the imported C.R. sheets and steel blanks when used in accordance with the provisions of Section 65 of the Customs Act for the manufacture of the body panels of the fuel efficient motor cars or vans of engine capacity not exceeding 1000 cc. The notification was subject to the condition that nothing contained in the notification shall apply to the Waste or refuse arising in the course of the manufacture of the body panels and the impor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Notification Nos. 54/86 and 171/88 and the ad hoc exemption order issued by the Government under Section 25 of the Customs Act are conditional notifications. It is required to be verified, as to whether the appellant had disposed of the aforesaid waste and scrap to M/s. Metal Scrap Trade Corporation Ltd., and documentary evidence has to be verified by the Assistant Collector, in this regard, as laid down in the order. The Notification No. 171/88 also lays down that the levy or duty issued exempted provided the credit of such duty had not been taken under Rule 56A or 57A of the Central Excise Rules, 1944. The learned Advocate had pointed out that no credit had been taken by them. But the learned Collector has not given any finding on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no dispute that they have duly fulfilled the conditions of the notification and availed the exemption under the notification. He further submitted that Notifications No. 54/86-C.E., No. 91/88-C.E. and 171/88 prescribed nil rate of duty for waste and scrap if it has arisen from goods falling under sub-heading 72.01 to 72.13, 7301.00, 7302.10, 73.03, 73.04, etc., on which duty of excise or additional duty leviable under Section 3 of the Customs Tariff Act has already been paid and the credit of such duty has not been taken. He mentioned that the Supreme Court, in the case of C.C.E. v. Usha Martin Industries Ltd. - 1997 (94) E.L.T. 460 has held that when the item has been cleared by availing exemption under a particular notification, the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s was the disposal of waste and scrap through MSTC and not sale to MSTC. Finally he submitted that the entire demand is barred by limitation since the Appellants were under the bona fide belief that the Waste and Scrap was exempt from duty in view of various notifications and accordingly they did not file classification list etc., for the same; that their bona fide belief was also supported by the Circulars issued by the Board; that for subsequent period, the Assistant Collector under Adjudication Order dated No. 91/93, dated 27-3-93, has extended the benefit of Notification No. 171/88-C.E. to the Waste and Scrap. 7. Opposing the submissions, Shri Satnam Singh, learned SDR, reiterated the findings of the Commissioner as contained in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty under a valid exemption would not mean that burden of payment of duty as leviable has not been discharged. Nil duty in these cases was duty at the appropriate rate and it is that duty which has been paid." Notification No. 54/86-C.E., dated 10-2-86 provided 'nil' rate of duty in respect of waste and scrap provided that such waste and scrap have arisen from specified goods on which duty of excise, under Section 3 of the Central Excise Act or, as the case may be, the additional duty leviable under Section 3 of the Customs Tariff Act has already been paid, but the credit of such duty has not been taken. The waste and scrap was similarly chargeable to nil rate of duty under subsequent Notification Nos. 91/88-C.E., dated 1-3-88 and 171/8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of body panels which, in turn, have also been used in the manufacture of under cars or vans; and (iii) that nothing contained in this notification shall apply to the waste or refuse arising in the course of the manufacture of the said body panels of such motor cars or vans, and that the importer undertakes to pay the whole of the duty of customs on all such waste or refuse cleared for home consumption. 10. It is not the case of the Revenue that imported C.R. sheets were not used in the manufacture of body panels or the requisite certificates were not produced or body panels have not been used in the manufacture of fuel efficient cars. The show cause notice for demanding the excise duty on Waste and Scrap was issued only on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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