COMMISSIONER OF CENTRAL EXCISE, LUDHIANA Vs. SHAKEEL METALS

JUDGEMENT

(1.) THE facts giving rise to this appeal and Cross Objection are, in brief, as under.

(2.) SHRI R.K. Verma, the learned DR for the appellant, assailed the impugned order by reiterating the grounds of appeal in the Revenue's appeal and pleaded that the Brass Brazing Granules are nothing but unwrought copper alloys and, hence, the same are correctly classifiable under sub -heading 7403.21, that the Brass Brazing Granules cannot be called an article of brass, as the same have not been made by the working on the unwrought brass and that in view of this, the impugned order is not correct.

(3.) WE have considered the submissions from both the sides and perused the records. The Brass Brazing Granules, in question, are made by pouring molten brass in cold water. These pallets/granules are used for the purpose of brazing and welding. In our view the term of 'article' would cover the items made by working on a metal. The goods, in question, are of in the nature of unwrought metal. Heading 7403.21 covers "copper zinc base alloys (brass)". Though the goods, in question, are used for soldering and brazing, they are not classifiable under 7406 as the same are not in form of powder or flakes. In our view, therefore, the Brass Brazing Granules/pallets would be correctly classifiable under 7403.21 and since they are other than the items specified in the SSI exemption notification, the same would not be available to them. The impugned order classifying the Brass Brazing Granules under sub -heading 7419.99 is, therefore, not correct. Since, in this case, the respondent, though manufacturing dutiable items not eligible for SSI exemption, had neither obtained Central Excise registration nor were paying any duty nor had intimated to the department about their activity, in our view, the extended period under proviso to Section 11A(1) would be available to the department for recovery of duty. Therefore, the impugned order setting aside the duty demand and penalty on the respondent is, not correct. The same is set aside and in this regard the order passed by the original Adjudicating Authority is restored. The Revenue's appeal is allowed. The cross objection filed by the respondent also stands disposed of.