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2015 (8) TMI 341 - CESTAT AHMEDABAD

2015 (8) TMI 341 - CESTAT AHMEDABAD - 2015 (329) E.L.T. 444 (Tri. - Ahmd.) - Refund - Benefit of area based exemption - Commencement of production of new product after the cut-of date i.e. 31.12.2005 or increased the capacity of the production - Notification No.39/2001-CE, dt.31.07.2001 - refund claims of the amount which had been paid towards Basic Excise Duty from PLA - whether the manufacturing process of Billets and Ingots are not identical - Held that:- As per Steel Industry Glossary of Ter .....

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, liquid metal is moulded through caster.

The Respondents in their Cross Objection No.E/Cross/82/2011 stated that the Billets are being manufactured with the help of automatic moulding machine i.e. Concast Machine. So, it is clearly evident from the records that the Concast Machine was installed for manufacturing of the Billets after 31.12.2005. So, the Respondents are not eligible to avail the benefit of the exemption notification. - we set aside the impugned order of both the autho .....

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n brief, are that the Respondents were engaged in the manufacture of the excisable goods namely Billets and M.S. TMT Bars falling under Chapter 72 of Central Excise Tariff Act, 1985. The Respondents was operating in the Kutch District in the state of Gujarat and availing the benefit of area based exemption under Notification No.39/2001-CE, dt.31.07.2001, as amended. They filed refund claims of the amount which had been paid towards Basic Excise Duty from PLA in terms of Notification No.39/2001-C .....

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it shall apply to a new industrial unit which has set up on or after the date of publication of the notification in Official Gazzette, but not later than the 31.12.2005. In the present case, the Respondent set up the Billete Concast Plant for manufacturing the Billets after 31.12.2005 and therefore, they are not eligible to get the benefit of exemption notification. He submits that the Commissioner (Appeals) failed to appreciate that the manufacturing process of Billets and Ingots are not identi .....

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.05.12.2013 in SCA No.13627/2013. c) M/s Ratmani Metals & Tubes Ltd Vs CCE Rajkot 2012 (276) ELT 230 (Tri-Ahmd) 4. He submits that the Commissioner (Appeals) erroneously proceeded on the basis that the Billets and Ingots are same. It is submitted that the Billets and the Ingots are classifiable under different sub-headings. In support of his contention, he submitted the Notes on difference between Billet and Ingot from WIKIPEDIA. The Hon ble Supreme Court in the case of Commissioner of Centr .....

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Commissioner of Central Excise Chandigarh Vs Doaba Steel Rolling Mills - 2011 (269) ELT 298 (SC). He submits that it is revealed from the order of the Commissioner (Appeals) that they have installed Concast Machine for the manufacture of the Billets after the cut of date i.e. 31.12.2005. 5. On the other hand, the learned Advocate on behalf of the Respondent submits that it is not a case of classification dispute. It is the case of eligibility of the benefit of exemption Notification No.39/2001- .....

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31.12.2005. The installation of the Concast Machine after the cut of date is for the purpose of increasing the production capacity. In this context, he strongly relied upon the Chartered Engineer s certificate. It is also submitted that both the authorities below proceeded on the basis of the Chartered Engineer s certificate, which is not disputed by the Revenue in their appeal. He strongly relied upon the decision of the Tribunal in the case of Commissioner of Central Excise & Customs, Raj .....

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01-CE (supra) as amended exempted the goods specified in the First Schedule to the Central Excise Tariff Act, 1985 other than the goods specified in the Annexure appended therein, cleared from a unit located in Kutchh District in Gujarat from payment of duty of Excise or the Additional Duty of Excise, as the case may be leviable thereon, under any of the said Act or it is equivalent to the amount of duty paid by the manufacturer of the goods to other than the amount of duty paid by utilization o .....

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ther than the amount of duty paid by utilization of CENVAT credit during the month under consideration to the manufacturer. Notification No.39/2001-CE (supra) as amended by Notification No.55/2004-CE, dt.09.11.2004, it shall apply only to new industrial unit, that is to say, units which was set up on or after the date of publication of the notification in the Official Gazette, but not later than 31.12.2005. 7. Hon ble Gujarat High Court in the case of M/s Saurashtra Ferrous Pvt. Ltd (supra) held .....

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ion/manufacturing of Pig iron was not commissioned and installed prior to 31.12.2005. Hon ble Court held that the petitioner is not eligible to the benefit of exemption Notification No.39/2001-CE (supra) as amended in respect of manufacturing of Pig iron. The relevant portions of the said decision are reproduced below:- 10. Considering the aforesaid decision and even the? original Scheme contained in Notification No. 39/2001, dated 31-7-2001, and the purpose and object of granting the benefit to .....

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by the concerned respondents in denying the exemption/benefit of Scheme contained in the Notification No. 39/2001, with respect to the production of Pig Iron. 11. Now, so far as the non-granting of the exemption/benefits contained in the Notification No. 39/2001, on production/ manufacturing of cast iron articles is concerned, it is not clear as to whether on production/manufacture of cast iron articles on the unit/plant and machineries fully installed and commissioned prior to 31-12-2005, the p .....

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s, the concerned respondent are required to consider the case of the petitioner for grant of the benefit under the Notification No. 39/2001 with respect to the production / manufacture of cast iron articles, considering the observations made herein above and the decision of this Court in the case of M/s. Plastene India Ltd. (Supra). 8. In the present case, the Respondents set up the machinery for manufacturing of the Ingots. According to the Revenue, the Respondents installed the Concast Machine .....

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.I. scrap/M.S. Scrap into molten bath with constant power track. In case of production of Ingots the liquid metal is moulded manually to make ingot and for billet the liquid metal is moulded through caster. Basically Concast machine is installed for quality improvement and upgradation of Rolled products etc. 9. The Commissioner (Appeals) observed that the Concast Machine is used for automatic moulding purpose and it enhance the quality of the product. It has also observed that the Revenue has no .....

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ourt in the case of Mahavir Aluminum Ltd held that the Ingots and Billets are two different commercial commodities. They have separate, distinct and identifiable marketability and saleability. As per Steel Industry Glossary of Terms, Mass of metal obtained from casting liquid steel into a mould. The resulting ingot a semi-finished product - is typically then hot rolled or forted. A Semi-finished long product of upto 150 mm square cross-section with round corners. Billets can be continuously cast .....

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