- (1.) THIS Appeal has been filed by the appellant-assessee under Section 35-L of the Central Excise Act, 1944 (for short 'the Act') against Final Order No. 186/2002-B dated 14. 05. 2002 passed by the Customs, Excise and Gold (Control)Appellate Tribunal, New Delhi (for short 'the Tribunal') in appeal No. E/5482/92-B.
(2.) THE point involved in this appeal is, whether the final products manufactured by the appellant are eligible for exemption under Notification No. 208/83-CE dated 1. 8. 1983, as amended from time to time. Briefly stated the facts giving rise to the filing of the present appeal, are as under: Appellant-ASSESSEE, hereinafter referred to as the 'assessee' is engaged in the manufacture of Steel bars and rods falling under sub-heading 7228. 30 and steel ingots falling under sub-heading 7226. 20 of Central Excise and tariff Act, 1985 (for short 'the Tariff Act' ). The government of India vide Notification No. 208/83-CE dated 1st august, 1983, as amended by Notification No. 90/88-CE dated 1. 3. 1988 and Notification No. 202/88-CE dated 20. 5. 1988 exempted certain final products falling under Chapter 72 from the whole of central excise duty, if they are produced out of the specified inputs described in (co. 2) of the said notification on which the duty has already been paid. As per the explanation to the notification, inputs purchased from the market will be deemed to be duty paid except such stocks as are clearly recognizable as being non duty paid and charged to nil rate of duty.
(3.) THREE show cause notices were issued to the assessee for the periods October, 1987 to March, 1988, April, 1988 to June, 1988 and September, 1988 to February, 1989 demanding duty of Rs. 2,65,849. 57, Rs. 4,41,394. 50 and rs. 59,569. 82 respectively. The assessee had purchased iron and steel scrap from the local market and used the same in the form of specified inputs (for availing the benefit of exemption under notification Nos. (i) 208/83-CE dated 1. 8. 1983; (ii) 90/88-CE dated 1. 3. 1988 and (iii) 202/88-CE dated 20. 5. 1988) for the manufacture of steel ingots. The samples drawn at the time of seizure established that the assessee had purchased iron and steel, bazaar scrap including turning and boring, old dismantled machinery, old broker engineering goods, punch steel metal, containers and other broken articles of iron and steel including small percentage of sample pieces of rods, flats end cutting, on which duty might not have been paid at the time of clearance.;