SAKET STEELS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) During the period of dispute (1 -11 -97 to 31 -3 -98), the appellants were engaged in the manufacture of Non -Alloy Steel Ingots which were chargeable to duty in terms of Section 3A of the Central Excise Act and other Alloy Steel Castings etc. (including Stainless Steel Castings and Alloy Steel Ingots), which were chargeable to duty at tariff rate in terms of Section 3 of the Act. During the said period, they paid central excise duty of Rs. 86,703/ -from PLA and central excise duty of Rs. 3,13,145.95 from RG23A Part -II. The payment of duty of Rs. 86,703/ - from PLA was based oh the Annual Capacity of Production of Non -Alloy Steel Ingots determined by the jurisdictional Commissioner of Central Excise. The payment of duty of Rs. 3,13,145.95 from the Modvat account was on the other Alloy Steel Castings which were outside the scope of Section 3A and were chargeable to duty at tariff rates in terms of Section 3 of the Act. The appellants filed refund claim for the entire amount of Rs. 3,99,848.95 on 17 -4 -98 on the ground that they had discharged the duty liability in full in terms of Section 3A and, therefore, the above payment of duty was a double payment. The department proposed to reject the refund claim on the following grounds : -