TMI Blog2014 (12) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... Learned authority determined assessable value of hot rolled Patta Patti following CAS 4 guideline. This shows that the authority has not acted arbitrarily. He has given appropriate concession to the traded goods to determinate the value of dutiable goods. From the material facts and evidence on record, it appears that balance of convenience tilts in favour of Revenue for which dispensation of pre-deposit shall cause prejudice to the interest of Revenue. Therefore considering totality of the facts and circumstances of the case and also considering quantum of duty of ₹ 2,37,56,152 levied followed by equal amount of penalty and interest, appellant is directed to make deposit of ₹ 1,50,00,000 within 4 weeks of receipt of this order and make compliance on 4-8-2014. - Following decision of Benara Valves Ltd. v. CCE - [2006 (11) TMI 6 - SUPREME COURT OF INDIA] - Partial stay granted. - E/3802/2012-EX - Stay Order No. S/51965/2014-EX(DB) - Dated:- 5-6-2014 - Shri D.N. Panda, Member (J) and Manmohan Singh, Member (T) Shri Bipin Garg, Advocate, for the Appellant. Shri Pramod Kumar, AR, for the Respondent. ORDER The allegation appearing in para 1.15 to 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion that the SS circles were not dutiable not being appearing in Central Excise Tariff. 3.3 Investigation found that the above three processes gave rise to SS circles and distinct excisable goods emerged at different stages with different identity and utility having their independent characters. Accordingly manufacturing processes carried out at different stages resulted in duty liability. 3.4 Appellant s contention that SS patta/patti did not find in the tariff entry for which that cannot be equated with SS cold/hot rolled sheets failed to get appreciation of learned adjudicating authority. According to the Revenue, SS cold sheets in the trade parlance are known as patta and patti and such patta and patti whether hot rolled or cold rolled are used in manufacturing SS circles and at each stage distinct goods having been manufactured, those were dutiable. 3.5 Appellant refuted all the allegations of Revenue on the contention that none of the allegations have basis in law and if there shall be levy, only compounded levy scheme will be applicable to the case of the appellant. But such contention of the appellant was rejected on the ground that central excise procedure was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.2 It was further argued by the appellant that when the stainless steel circles were liable to duty, seizure was not warranted. But that was unlawfully done during the course of investigation on 25-1-2011. 5.3 It was further submitted by Appellant that it was a trader of stainless steel circle. The goods found during search were traded goods and not liable to seizure. Patta/patti generated to manufacture SS circles is exempt from the duty. Appellant was entitled to the benefit of Notification No. 8/2003-CE, dated 1-3-2003 as SSI prior to February, 2005 since patta/patti was subjected to nil rate of duty. 5.4 Appellant placed reliance on para 12 of the show cause notice to advance argument that purchase and sale being recorded and manufacture being evident from record, there should not be any arbitrary determination of quantity of goods manufactured or raw materials purchased during the period May, 2006 to December, 2010 to levy duty. Goods sold by appellant as trader was proved from discharge of sales tax liability. Therefore adjudication is not unsustainable. Without any evidence and good reason investigation says that sales tax records revealed different specifications ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) Cold rolled SS sheets manufactured on job work basis without following the provisions of Notification No. 214/86-CE dated 25.3.86 (as amended). The total Central Excise duty not paid by the noticee has been worked out as ₹ 2,37,56,152 (Rs. 2,30,70,883/- CE duty + ₹ 4,61,418/- Edu Cess + ₹ 2,23,851/- SHE Cess), as per annexure I to the notice. (4) Revenue came to the conclusion that cold rolled SS patta patti, SS circles and SS scrap manufactured by the appellant during the period May, 2006 onwards were excisable goods for which those were liable to duty. When the appellant failed to seek registration under law and file relevant return as well as defaulted to pay duty on excisable goods manufactured and cleared during 2007 to December, 2010, adjudication proceeding was initiated rightly in terms of show cause notice requiring the appellant to discharge the duty liability of ₹ 2,37,56,152/- which was confirmed by adjudication order dated 31-8-2012. (5) Appellant s plea that the goods manufactured were not liable to duty nor being covered by the tariff entry has been well answered against the appellant by adjudicating authority in para 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to duty failed to succeed before ld. Authority below when Revenue points out that those were used to give rise to dutiable goods i.e. SS circles. Accordingly there was no immunity from levy of duty. 13. Law is very clear that benefit of compounded levy is extendable subject to compliance to the procedure of law, which cannot be given go-by. Admittedly, the appellant not being registered manufacturer under the law, failed to avail the benefit of compounded levy scheme, if any applicable. 14. When it came to record that the appellant was also a trader and claimed no levy of duty on the traded goods, learned adjudicating authority in para 3.19 of the adjudication order determined actual quantum of manufactured goods granting appropriate deductions in respect of such traded SS circles. 15. To determine the assessable value of SS circles, department did not resort to any arbitrary process but followed the guidelines of CAS 4. 16. To make the case of Revenue a fool proof one in respect of SS circles sold by the appellant, inquiry was conducted from the buyers. They confirmed that they had purchased SS circles and SS scrap from the appellant. That proved that the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erminate the value of dutiable goods. 23. From the discussion above and from the material facts and evidence on record, it appears that balance of convenience tilts in favour of Revenue for which dispensation of pre-deposit shall cause prejudice to the interest of Revenue. Therefore considering totality of the facts and circumstances of the case and also considering quantum of duty of ₹ 2,37,56,152 levied followed by equal amount of penalty and interest, appellant is directed to make deposit of ₹ 1,50,00,000./- (Rupees One crore fifty lakhs) within 4 weeks of receipt of this order and make compliance on 4-8-2014. 24. Subject to compliance of the direction above, realization of balance of amount of duty of ₹ 87,56,152/- and penalty of ₹ 2,37,56,152/- followed by interest on the duty shall be stayed during the pendency of the appeal or a period of six months whichever is earlier. 25. While passing the order as above, we have been guided by the ratio laid down by the Apex Court in the case of Benara Valves Ltd. v. CCE - 2006 (204) E.L.T. 513 (S.C.) = 2008 (12) S.T.R. 104 (S.C.) to protect interest of Revenue which weighs heavier when the appellant fail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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