COMMISSIONER OF CENTRAL EXCISE Vs. GUPTA STEEL

JUDGEMENT

(1.) THE respondent is engaged in the manufacture of excisable goods i.e. Iron & steel scrap and other ferrous and nonferrous materials obtained by breaking of old ships. The respondent was availing Cenvat credit under Rule 57AB of the erstwhile Central Excise Rules, 1944 (now Rule 3 of Cenvat Credit Rules, 2002). The respondent is importing old ships for breaking and is availing of the credit of additional custom duty paid on the ships as Cenvat credit, and is utilizing the same for fulfilling the duty liability at the time of clearance of its final products.

(2.) THREE show cause notices under Rule 57AH (now Rule 12 of Cenvat Rules) read with Section 11A and Section 38A of the Central Excise Act, 1944 and interest under Section 11AB of the Central Excise Act, 1944, were issued to the respondent -assessee for having wrongly taken credit of additional custom duty paid on bunker, foodstuff etc. The Assistant Commissioner confirmed the demand raised in the show -cause notices vide Order in Original No. BVR/46 -48/2003, dated March 31, 2003. Aggrieved by the said order, the assessee preferred an appeal before the Commissioner (A), Central Excise, Rajkot, who rejected the appeal by order dated July 18, 2003. Thereupon, the assessee preferred an appeal before CESTAT, WZB, Mumbai. The appeal was dismissed by order dated October 31, 2003.

(3.) THIS Court has heard Mr. J.M. Malkan, learned Assistant Solicitor General of India, at length and in detail.