SAIL Vs. CCE

JUDGEMENT

(1.) THE present appeal is against the orders of the Commissioner classifying the "Pitch Creosote Mixture" (PCM) and Road Tar under sub -heading 2708.11 of the schedule to Central Excise Tariff and "Pitch" under 2708.19 and consequent confirmation of demand of duty Under Rule 9(2) of the Central Excise Rules, 1944 read with Section 11A of CEA, 1944 and a penalty of Rs. 30 lakhs Under Rules 9(2) and 173Q (2) of the Central Excise Rules on M/s. SAIL, BHILAI Steel Plant Bhilai 490 -001 M.R who are primarily manufacturers of steel for which they use coal and in the process of converting the coal for use in the manufacture of steel, they obtain products, inter alia, Pitch Creosote Mixture (PCM), Road Tar and Pitch.

(2.) THE SCN was issued, as it was alleged that in order to avail the benefit of NIL or lower rate of duty they had declared their products as Pitch blending with Tar Oils like Creosote oil, Anthracene oil etc. and in respect of PCM and Road Tar they declared it as 'Tars/reconstituted tars'. This misclassification has resulted in lesser duties as Under:

(3.) FROM the process of manufacture of pitch, FCM and Road Tar as stated by Shri Kuljit Singh, Chief Supdt., Bye -product Plant, in his statement recorded under Section 14 of the CESA, 1944 on 13.10.90 is also as described in the defence replies submitted by the noticee, I find that to manufacture/obtain pitch, PCM and Road Tar, hot molten tar is distillated. Thus, it is now an established fact that pitch, PCM and Road Tar and the residue product remaining after the distillation of Tar.