FERRO SCRAP NIGAM LIMITED Vs. CCE

JUDGEMENT

(1.) AFTER hearing both the sides we find that the demand of duty of Rs. 2,38,97,913 stands confirmed against the appellant along with imposition of penalties under sections 76 and 78 of the Finance Act, for the period September 10, 2004 to February 28, 2005, by way of raising a show -cause notice dated June 22, 2006. As per the facts on record the appellant is a public sector undertaking and entered into contracts with various steel plants for recovery, processing the scrap out of slag which arises in the factory of the steel plants. They were also to move the said recovered scrap from their production floors located in the plant itself for further use of the same by the steel plants.

(2.) THE appellant were required to undertake the following activities in the steel plants of their clients:

(3.) DURING the relevant period the definition of "business auxiliary service" was as under: