CHOKSHI TUBE LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) APPELLANTS , M/s. Chokshi Tube Ltd., have filed this appeal to the Tribunal against Order -in -Appeal No. A -713/BD -198/83, dated 30 -3 -1983, passed by Shri B.K. Agarwal, Collector of Central Excise (Appeals), Bombay. By the said order, Asstt. Collector of Central Excise, Ahmedabad's order dated 14 -9 -1981 demanding Rs. 2,59,571.00 as duty from the appellants was upheld.

(2.) FOR proper appreciation, history of the case is necessary. The appellants at their factory at Vatva Industrial Area, Ahmedabad had been manufacturing 'Stainless Steel Pipes and Tubes' since 1972 from "Stainless Steel Strips, Plates, Sheets etc. imported from abroad". On these imports, Customs and countervailing duty, as prescribed from time to time had already paid. The appellants claim that under bonafide impression that no excise duty was payable on pipes and tubes maunfactured from the imported stainless steel strips, plates and sheets on which countervailing duty had already been paid, they did not pay duty till March, 1975. After introduction of Tariff Item 68 in Central Excise Tariff from 1st March, 1975 covering all goods not elsewhere specified, the appellants felt that pipes and tubes manufactured by them would be liable to duty under Item 68 and approached the Central Excise authorities to issue a licence under Section 6 of the Central Excises and Salt Act, 1944 (hereinafter called the Act). The Superintendent of Central Excise by letter dated 3 -6 -1975 informed the appellants that stainless steel pipes and tubes fall under Item 26AA of the Central Excise Tariff, the appellants should clear the goods only on payment of duty as prescribed under that item and after complying with the rules and regulations. The Superintendent, Central Excise stopped the clearance of appellants' pipes and tubes, as he did not accept the appellants' plea that their manufactured product was eligible for exemption from Central Excise duty by virtue of Notification No. 69/73 -C.E., dated 1 -3 -1973. Appellants approached the Appellate Collector of Central Excise, who by his order dated 26 -3 -1976 held that Superintendent, Central Excise's letter dated 3 -6 -1975 was neither an order nor a decision nor had the appellants submitted a classification list. The appellants should file classification list and file an appeal if the Asstt. Collector passes an appealable order.

(3.) IN the meanwhile, the Asstt. Collector, Central Excise issued a Show Cause Notice dated 22 -12 -1975 alleging that the appellants had manufactured and cleared 2,51,571 metric tonnes of stainless steel tubes out of imported stainless steel strips, plates etc. during the period 1 -3 -1973 to 31 -3 -1975 without obtaining necessary licence under the Act and without payment of duty. The appellants were inter alia called upon to show cause to the Collector of Central Excise, Baroda why Central Excise duty due on the said goods at appropriate rates should not be recovered from the appellants. The appellants filed reply explaining that pipes and tubes maunfactured by them during the period were not liable to excise duty in view of certain exemption notifications. The Collector of Central Excise, Baroda (Shri K.S. Dilipsinhji) by his order -in -original dated 21 -12 -1978 negativated appellants' pleas and imposed penalty of Rs. 52,000/ -, ordered confiscation of plant, machinery and building on a redemption fine of Rs. 50,000/ - and about duty of excise he observed, "I do not pass any order with regard to payment of duty of excise on the stainless steel tubes removed by the company without payment of duty as I find that this matter is being handled by the concerned Assistant Collector, who should finalise it early."