DCM SHRIRAM INDUSTRIES LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) These are two writ petitions by the Petitioner, DCM Shriram Industries Ltd., challenging the orders dated 15th April 1998 and 14th March 2000 passed by the Customs, Excise & Gold (Control) Appellate Tribunal (CEGAT). While the first mentioned order dated 15th April 1998 of the CEGAT emanated from a Show Cause Notice (SCN) dated 19 th February 1991 issued by the Central Excise Department ('Department') to the Petitioner, pertaining to the period 1st March 1986 to 31 st December 1989, the second order dated 14th March 2000 of the CEGAT emanated from an SCN dated 5th July 1990 issued by the Department to the Petitioner pertaining to the period 1st January 1990 to 26th March 1990.

(2.) At the outset it was stated by Mr C. Hari Shankar, learned Senior counsel for the Petitioner on instructions that the Petitioner was not pressing W.P. (C) No. 1926 of 2000 which challenges the CEGAT's order dated 14th March 2000 emanating from the SCN dated 5th July 1990. Accordingly the present challenge is confined to the CEGAT's order dated 15 th April 1998 emanating from the SCN dated 19th February 1991 pertaining to the period 1st March 1986 to 31st December 1989.

(3.) The facts are that the Petitioner, inter alia, owns and operates a manufacturing unit in Meerut District, Uttar Pradesh and known as Daurala Sugar Works. The Petitioner has been operating a chemical plant at the said factory at Daurala where it is engaged in the manufacture and sale of various chemicals falling under Chapters 28, 29 and 38 of the Schedule to Central Excise Tariff Act, 1985 (CET Act). One of the items manufactured by the Petitioner is Phenyl Acetic Acid (PAA) classified under Chapter 29 of the CET . It is stated that in the manufacture of PAA two intermediate products are manufactured which are captively consumed viz., Benzyl Chloride (BeCL) and Benzyl Cyanide (BeCN). BeCN is used as an input for the manufacture two final products: PAA, which is exempt from payment of excise duty and its 'Aqueous Layer' which is classified under the heading 38.23 of the CET and is subject to 15% excise duty chargeable ad valorem.