S.T.L. EXPORTS LTD. Vs. C.C.

JUDGEMENT

(1.) M /s . S.L.T. Exports Ltd. have filed this appeal against the order -in -original No. 6 -8/03 dated 30.1.03, by which the Commissioner has confirmed the demand of customs duty and imposed penalty.

(2.) SHRI Bipin Garg, learned Advocate, submitted that the appellants are a 100 per cent Export Oriented Unit and are engaged in the galvanising of black M.S. pipers; that they were getting M.S. pipes/zinc without payment of duty under Notification No. 1/95 -CE dated 4.1.95 and were also importing zinc without payment of customs duty under Notification 53/97 -Cus dated 3.6.97; that a Trade Notice No. 23/94 dated 17.4.94 was issued by the Indore Commissionerate, wherein it was mentioned that galvanisation of M.S. pipes does not amount to manufacture within the ambit of Section 2(f) of the Central Excise Act, that they had cleared galvanised pipes in Domestic Tariff Area (DTA) without payment of Central Excise duty as galvanisation does not amount to manufacture; that two show cause notices dated 24.4.98 and 21.7.98 were issued to the appellants for demanding duty for the period from 25.3.98 to 1.5.98; that the demand, confirmed under the show cause notice dated 24.4.98, has travelled upto the Appellate Tribunal; that the Appellate Tribunal, vide final Order No. 190/2003 -B dated 14.3.03, has rejected their appeal holding that they are liable to pay Central Excise duty when the pipes, after galvanisation, were removed in DTA instead of being exported out of the country; that the duty demanded under 2nd show cause notice dated 21.7.98, has also been confirmed by the original Adjudicating Authority, which is pending before the Commissioner (Appeals).

(3.) COUNTERING the arguments, Sh. D.N. Choudhary, learned S.D.R., reiterated the findings as contained in the impugned order and emphasised that the earlier show cause notices were issued for recovery of duty under Central Excise Act, whereas the present three show cause notices have been issued for recovery of duty under provisions of Customs Act read with the condition No. 7 of the Notification No. 53/97 -Cus. dated 3.6.97. He also mentioned that the duty has to be demanded under Customs Act for the reasons that the appellants have challenged the duty confirmed under the provisions of Central Excise law.