GUJARAT AMBUJA CEMENT LTD. Vs. CCE

JUDGEMENT

(1.) The appellants are aggrieved by the demand of duty of Rs. 12,85,644.70 confirmed against them by the Commissioner and also against the penalty of equivalent amount and interest in respect of iron and steel scrap.

(2.) The allegation is that they have removed iron and steel scrap in contravention of rule 9(2) of the Central Excise Rules, 1944 read with Section 11A(1) of the Act. Show cause notice also seeks to recover duty from the appellants on furnace oil and used refractory bricks. But the demand on these was dropped. The present proceeding relates to the demand of duty on iron and steel scrap.

(3.) The appellants are manufacturer of cement and steel scrap has arisen, not while manufacturing the cement but the said iron and steel scrap arose while using the duty paid iron and steel material for construction work in their factory. It has been pleaded that no credit under the Modvat Scheme was taken in respect of the duty paid on iron and steel material brought into the factory for construction work. Show cause notice alleged that the said clearances ought to have been effected on payment of duty in terms of rule 57 -F(18) (a) and rule 57S(2) (c) of the Rules.