SUNDER STEELS LTD. Vs. CCE, HYDERABAD

JUDGEMENT

(1.) THIS is an appeal against the Order -in -Original No. 17/98 dated 16.12.1998 passed by the Commissioner of Customs & Central Excise, Hyderabad. The appellants are aggrieved by the said order on the simple issue of interpretation of clause (e) of the Explanation appended to Notification No. 30/97 -CE(NT) dated 1st August, 1997. Heard Sri D.V. Anjaneyulu, learned Chartered Accountant for the appellants and Sri S. Kannan, learned DR.

(2.) THE learned Chartered Accountant submits as follows: - -

(3.) THE learned DR also submits that while interpreting the clause (e) ibid, a distinction needs to be made between the presence of technology and the actual capacity to produce the final products. He submits that whereas even if it is held that the plant does have the capacity to treat iron ore and produce sponge iron out of it, that by itself, does not satisfy the clause (e) in view of the lateral entry of market sourced sponge iron at the melting stage for the production of billets. Since this sponge iron from the market is not produced within the factory premises, therefore, clause (e) is violated. The learned DR also submits that the decisions cited by the learned Chartered Accountant stand distinguished on facts, as the issues considered therein were not relating to this Notification or clause (e) thereof.