VIKRAM ISPAT Vs. CCE

JUDGEMENT

(1.) THESE are 16 appeals filed by the assessees against the orders. These appeals are against the adjudication orders made against 5 show cause notices which were confirmed by the Collector of Central Excise, Mumbai -III. The following are the show cause notices:

(2.) THE facts of the case are that the Appellants are manufacturer of HP Sponge Iron 72.03 wherein the Appellants has one of the inputs required is Iron Ore Pellets falling under heading 26.01. The inputs are either imported, procured from domestic manufacturers, or procured from 100% EOUs (Export Oriented Units).

(3.) WHEN they are imported they bear customs duty as well as Additional Duty of Customs. The Appellant avails modvat credit of Additional Duty. When such inputs are received from domestic manufacturer they bear Central Excise duty and the Appellants take modvat credit on such duty paid. When such inputs are received from 100% EOUs they bear the Central Excise duty which according to the Appellants is quantified in terms of Notification 2/95 and the Appellants take modvat credit on such duty paid. The Appellants also stated that Notification No. 5/94 is also relevant for the purpose of determination of the cases. The Learned Advocate for the appellants Shri C.S. Lodha argues that the restriction provided in the Notification will be applicable to the facts of the case. It was the case of the Appellants before the department that what has been indicated in Notification 2/95 is measure. It is the view of the department that the duty that is borne is excise duty, the measure provided for in proviso to Section 3 is significant. The measure provides for levy of excise duty equivalent to customs duty.