Bharucha, J. - (1.) These appeals may be disposed of by a common judgment inasmuch as the Customs. Excise and Gold (Control) Appellate Tribunal allowed the appeal in the case of M/s. Steel Strips Ltd. (Civil Appeal No.438 of 1989 before us) following its judgment in the case of M/s. Atma Steel Pvt. Ltd. (Civil Appeal No. 3524 of 1986 before us).
(2.) The assesses make cold rolled steel strips from hot rolled steel strips. The applicable entry of the Central Excise Tariff is Tarrif Item No.26AA, which deals with "Iron or steel products the following, namely: ********** (iii) Flats, skelp and strips ********** " For the relevant period, being March 1982 to February 1986, an Exemption Notification was in operation in regard to steel strips, being notification No.55/80 dated 13th May, 1980, as amended, issued under rule 8 of the Central Excise Rules, 1944. It exempted galvanised strips and other than galvanised strips from so much of the basic excise duty leviable thereon as was in excess of Rs. 850/- per metric tonne and Rs.350/- per metric tonne respectively. It then referred to "other cold-rolled strips" and "other hot-rolled strips" and exempted them from so much of the basic excise duty leviable thereon as was in excess of Rs.650 per metric tonne and Rs.450 per metric tonne respectively.
(3.) It was the case of the Excise authorities that cold rolled strips were obtained by the assessees by a process of manufacture and were entitled to exemption from so much of the basic excise duty leviable thereon, namely, Rs. 1350/- per M.T., as was in excess of Rs.650/- per M.T. In other words, the effective rate of excise duty that the assessees were obliged to pay, according to the Excise authorities was Rs.650/- per M.T. In this behalf, the strips of the assessee M/s. Atma Steel were confiscated and a penalty imposed. The assessee Atma Steel appealed to the Tribunal and the tribunal allowed the appeal.;