TMI Blog2014 (12) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... nil’ rate duty on the ‘silver’ which arises/manufactured during the continuous process of manufacturing of copper cathode or not. - Held that:- It can be seen from the existing entries under Notification No. 5/2006 at Sr No. 25, exempts silver in their primary form and it is undisputed appellant had availed the benefit of this entry. The said Notification No. 5/2006-CE underwent an amendment wherein an entry No. 21C was inserted which indicated that sliver in any form is liable to concessional duty, which arises during copper smelting from copper ore or concentrate. For the period in question in this case i.e., 1.3.2011 to 16.1.2012 both the entries entry No 25 and entry No.21C were present in Notification No. 5/2006-CE. Reasoning record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, a raw material imported by them. Which is reacted in smelting furnace and undergoing various processes, Copper Cathode and other metals like gold and silver also get generated during the process of copper smelting. The issue in this case relates to levy of duty on silver produced by the appellant in this process. The appellants were availing benefit of Notification No. 5/2006-CE dated 1.3.2006 No. 25) for the clearance of Silver till 16.1.202. Sr No 25 of Notifications No. 5/2006-CE dated 1.3.2006 is as under: Sr No Chapter of hearing of sub-heading or item of the first schedule. Description of Excisable goods Rate Condition No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... silver was deleted from the entry mentioned at Sr No,. 25 of the said Notification No. 5/2006-CE dated 1.3.2006. As a result of the said amendments, appellant started paying duty on silver from 17.1.2012 onwards. The SCN dated 3.4.2012 was issued for recovery of Central Excise duty ₹ 8,46,07,608/- on the clearances of silver during the period 1.3.2001 to 16.1.2012 under Section 11A(1) of Central Excise Act 1944 alongwith interest under Section 11AA of Central Excise Act, 1944 and penalty under Section 11AC of Central Excise Act, 1944/Rule 25 of Central Excise Rules, 2002. 3. The appellant contested the show cause notice before the Adjudicating authority. The Adjudicating Authority after considering the submissions made disagreed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nil rate duty on the silver which arises/manufactured during the continuous process of manufacturing of copper cathode or not. 8. The undisputed facts are silver which is manufactured by the appellant is arising during the process of copper ore into copper cathodes. The benefits of Notification of No. 5/2006-CE dtd 1.3.2006 is claimed by the appellant for the period. 9. We have already reproduced the headings which are disputed by both sides in our Paragraph No. 2 hence we are not reproducing the same entries here again. 10. It can be seen from the existing entries under Notification No. 5/2006 at Sr No. 25, exempts silver in their primary form and it is undisputed appellant had availed the benefit of this entry. The said No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue sought to thrust the Notification which is more beneficial to the Revenue. Lordships in Paragraph 16 held as under: 16. In the instant case, the ground which weighed with the Deputy Director General (Medical), DGHS for non-considering the prayer of the appellant was that earlier, exemption was sought under category 2 of exemption notification, not under category 3 of exemption notification and exemption under category 2 was withdrawn. This is hardly a ground sustainable in law. On the contrary, well settled law is that in case the applicant is entitled to benefit under two different Notifications or under two different Heads, he can claim more benefit and it is the duty of the authorities to grant such benefits if the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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