Arijit Pasayat, J. - (1.) These appeals are inter-linked. In Civil Appeal No. 4322 of 1999 M/s Kores India Ltd., Chennai (hereinafter referred to as the assessee) calls in question legality of the judgment rendered by the Customs, Excise and (Gold) Control Appellate Tribunal, South Zonal Bench, Chennai (in short the Tribunal) holding that demand for duty raised in respect of typewriter/telex ribbons is in order, In the connected appeals Commissioner of Central Excise, Indore calls in question legality of the New Delhi Bench of CEGAT taking a divergent view in holding that duty was not payable.
(2.) Background facts in a nutshell are as follows: So far as civil appeal No. 4322/1999 is concerned, show cause notice was issued by the Collector of Central Excise, Chennai (in short the Commissioner) on 22,3.1993, inter alia, proposing levy of duty on the typewriter ribbons cleared by the assessee during the period 1.3.1988 to 30.9.1982 by invoking extended period of limitation under proviso to Section 11A of the Central Excise and Salt Act, 1944 (in short the Act). In the reply to the show cause notice, assessee took the stand that no process of manufacturing is involved in the concerned transaction. Assessee receives excise duty paid on typewriter/telex ribbons in jumbo rolls of 210 mtrs. or more length from two small SCALE units in Madras. In the assessees factory typewriter rolls are fed into cutting and spooling machines wherein the ribbons of standard length of 10 mtrs, and 5 metrs. are cut and spooled into metal spoons. The ribbons in spools are packed and sold by the assessee. With reference to Heading 96.12 of the Schedule to the Central Excise Tariff Act, 1985 (in short the Tariff Act) it was submitted that since appropriate central excise duty had been levied on the rolls there is no question of paying any further duty. Apart from cutting of ribbons into standard pre-determined lengths, the assessee does not take any activity on the ribbons received. It is to be noted that by order-in-original No. 40/93 dated 19.8.1993 passed by the Collector of Central Excise, duty of Rs. 2,89,76000/- was levied on clearance of carbon papers and typewriter ribbons from the assessees factory at Madras. Duty was affirmed under Rule 9(2) of the Central Excise Rules, 1944 (in short the Rules) read with proviso to Sub-section (1) of Section 11A of the Act. Further demand of Rs. 2,14,066/- was confirmed on seized carbon papers and ribbons. Seized goods of both varieties valued at Rs. 5,36,276.36 were held to be liable for confiscation and were released by enforcing the Bank Guarantee furnished to the extent of Rs. 50,000/-. Collector also levied penalty of Rs. 30 lakhs under Rule 173Q of the Rules.
(3.) Show cause notice related to the two products i.e. carbon papers for the period 1.3.88 to September, 1892 and typewriter/Telex ribbons for the period 1.4.88 to September, 1992. The present dispute relates only to typewriter/telex ribbons.;