9911796707
TMI Blog2003 (7) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... learned DR, submitted that the respondents manufacture Non-alloy Steel ingots/billets in their induction furnace; that they filed an application dated 29-3-1997 opting to work under Rule 96ZO(3) of the Central Excise Rules, 1944; that the respondents again under their letter dated 15-1-97 intimated the Commissioner that they had obtained an order worth Rs. 1 crore for supply of castings to Rail Coach Factory and as they would ordinarily be producing steel castings and may produce ingots also, they would be discharging their duty liability w.e.f. 16-1-1998 under Section 3 of the Act after availing Modvat credit of the duty paid on inputs; that the Commissioner under the impugned order has directed the respondents to pay duty under Section 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so incidentally produces non-alloy steel ingots and billets; that this Explanation does not excludes the provisions of sub-rule (1) of Rule 96ZO to be applicable to such unit; that as the respondents are manufacturing non-alloy steel ingots which has been notified under Section 3A of the Central Excise Act, they are liable to pay Central Excise duty under the said Section and not under Section 3 of the Act. 3. Opposing the appeal, Shri Sudhir Malhotra, learned Advocate, submitted that when the provisions of Section 3A of the Act were brought into operation the Board had issued Circular No. 325/41/97-CX., dated 25-7-97 wherein it has been clarified in Para 21 that if a manufacturer produces castings or stainless steel products and also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 207.90 of the Schedule to Central Excise Tariff Act under Section 3A of the Central Excise Act. Explanation to notification, however, provided that nothing contained in this notification shall apply to, inter alia, an induction furnace unit which ordinarily produces castings or stainless steel products, but may also incidentally produces non-alloy steel ingots and billets. It is thus apparent that a unit manufacturing both steel castings or stainless steel products and ingots would be covered by the provisions of Section 3A only, if the ingots are not produced incidentally. The Commissioner in the impugned order has decided the nature of product ordinarily produced by the respondents on the basis of quantity. We do not find any infirmity in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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