- (1.) This appeal is against the Judgment of the Customs, Excise and Gold (Control) Appellate Tribunal dated 11th June, 1999.
(2.) The question for consideration is whether the respondents (herein) are entitled to the benefit of Notification No. 30/97-C. E. dated 1st August, 1997. The relevant portion of the said Notification reads as follows:- "G.s. R. 445 (E) - In exercise of the powers conferred by sub-section (1) of Section 3a of the Central Excise Act, 1944 (1 of 1944) , the Central Government having regard to the nature of the process of manufacture or production of ingots and billets of non-alloy steel falling under sub-heading nos. 7206.90 and 7207.90 of the Schedule to Central Excise tariff Act, 1985 (5of 1986) , manufactured or produced in an induction furnace (hereinafter referred to as such goods) , the extent of evasion of duty in regard to such goods and on being satisfied that it is necessary to safeguard the interest of revenue, hereby specifies such goods as notified goods, on which there shall be levied and collected duty of excise in accordance with the provisions of the said Section 3a. Explanation:- Nothing contained in this notification shall apply to: a). . . . . . . . . b). . . . . . . . . c). . . . . . . . . . d). . . . . . . . . . e) an integrated steel plantwhich manufactures or produces ingots or billets and rolled products, starting from the stage of iron ore, within the same premises. "
(3.) Facts not in dispute are that the respondents have a manufacturing unit which has capacity to manufacture or produce ingots or billets or roiled products, starting from the stage of iron ore, within the same premises. However, it appears that during the relevant period the respondents were producing sponge iron approximately 3.500 to 4,000 per M. T. of which they used only 452.38 M. Ts. for production of M. S. ingots. During this period they also purchased 14093 M. Ts. of sponge iron which they then used for production of ingots. Thus, almost 96% of the production of ingots was from out of sponge iron which was not produced by the respondents within the factory. As 96% of the production was not from sponge iron produced in the factory, the respondents were denied of the benefit of the concerned Notification. They are sought to be taxed under Section 3-A of the Central Excise Act, 1944 (as it then was) on the basis of installed capacity.;