PARSHVA OVERSEAS Vs. JOINT SECRETARY AND ORS.

JUDGEMENT

(1.) Mr. Pankaj Kumar Jain, proprietor Parshva Overseas assails the Order dated 18th February, 2010 passed by Mr. D.P. Singh, Joint Secretary, allowing the revision application filed by the Commissioner of Central Excise, Delhi-I, represented before us by the Union of India-the Respondent. The relevant and operative portion of the impugned Order reads:

(2.) Learned Counsel for the Petitioner had submitted that the impugned Order refers to/relies upon the principle of double benefit and urged that it was not the case of the Revenue that the Petitioner had enjoyed double benefit. In this connection, our attention was drawn to the Order dated 8th December, 2008 passed by the Assistant Commissioner, rejecting the application of the Petitioner for refund/rebate of Rs. 23,62,737/-.

(3.) The Petitioner is a manufacturer and exporter of stainless steel circles and utensils. For this purpose it purchases stainless steel coils/flats which are an input or raw product which is first converted into stainless steel circles and then in the second stage is used to manufacture stainless steel utensils. Conversion of stainless steel coils/flats into stainless steel circles attracts payment of excise duty under the Central Excise Rules, 1944 but conversion of stainless steel circles into stainless steel utensils is exempt from payment of excise duty as per Notification No. 10/2003 dated 1st March, 2003. The Petitioner had purchased Stainless Steel Coils/ flats from registered dealers for manufacture of stainless steel circles. Central Excise duty was paid on Stainless Steel Flats/Coils when the said raw materials were converted into stainless steel circles. The Petitioner also purchased stainless steel circles on which excise duty was paid. The duty paid on the inputs/raw material as well as manufacture of stainless steel circles was duly credited in the RG 23 part II register maintained under the provisions of Central Excise Rules.