VIKAS INDUSTRIES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal arises from Order -in -Original No. 2/90 passed by Additional Collector of Central Excise, dated 29.1.90 confirming duty demand of Rs. 3,72,469.72 in respect of 1020.465 Mts of MS Rounds and Bars manufactured out of non -duty paid ship breaking scrap and cleared during the period 1.8.84 to 31.3.85 and from 1.3.86 to 26.3.87 under Rule 9(2) of the Central Excise Rules, 1944 read with proviso to Section HA of the Central Excise and Salt Act, 1944. A penalty of Rs. 40,000 has also been imposed. The show cause notice was issued on 24.8.89 in respect of the demands in question.

(2.) THE appellants are not present and notice issued to them have all come back undelivered. Therefore, the appeal was taken up for decision on merits.

(3.) LEARNED SDR points out that the issue pertaining to the non -applicability of Notification No. 208/83 dated 1.8.83 has already been gone into in the case of Tigrania Metal and Steel Ltd. v. CCE and it has been held by the Tribunal that the benefit of the said notification is not applicable to the ship breakingscrap. He submits that the appellants do not have a case on merits. He further points out that the Additional Collector has given a detailed finding as to why larger period is required to be applied in the present case as the details pertaining to purchases from ship breaking agencies had not been brought to the notice of the department and also with regard to the non -duty paying nature of the inputs received from the ship breaking agencies.