D.S. Mathur, J. - (1.) This judgment shall govern Writ Petitions Nos. 7709 and 7710 of 1973 by Messrs Bansal Steel-sons Company Private Limited and Messrs Prakash Industries, respectively, for the issue of a writ of certiorari, order or direction in the nature of certiorari to quash the order dated 14-11-1973 passed by the Superintendent Central Excise, M.O.R. Meerut, respondent No. 4, directing the petitioners to pay Excise Duty on the finished goods falling under sub-item (a) of Item No. 26-AA of the First Schedule to the Central Excises and Salt Act. There is also a prayer for the issue of a writ of prohibition, order or direction in the nature of prohibition to direct the respondent, namely, the Union of India, the Collector. Central Excise, Kanpur, the Assistant Collector, Central Excise, Meerut, and the Superintendent, Central Excise, M.O.R. Meerut, not to recover any Excise Duty on the above mentioned goods manufactured by the petitioner.
(2.) The facts of the case are not in dispute. Both the petitioners manufacture roll bars after cutting or breaking ingots received from Mini Steel Plants (electric are furnaces units) on which appropriate amount of Excise Duty has already been paid. They do not purchase ingots from major steel plants like Hindustan Steel Limited. The ingots as received are almost in the shape of billets and as a result of cutting or breaking the shape of the pieces of the ingots is not altered and these pieces are rolled into bars etc. Under notification dated. 30-11-1963 as amended in August 1965, iron or steel products falling under sub-item (1) of Item No. 26-AA of the First Schedule to the Central Excise and Salt Act made from the following materials are exempt from the Excise Duty. "Ingots, on which the appropriate amount of duty of excise has already been paid, cut or broken (but not rolled) in any shape resembling the shape of any of the products referred to in sub-item (1) of the said Item No. 26-AA."
(3.) The case of the petitioners is that the steel products manufactured by them, falling under sub-item (ia), from the ingots received from the Mini Steel Plants on which the appropriate amount of duty has already been paid are exempt from payment of further Excise Duty. The Excise Department has, however, taken a contrary view and they are taking steps to recover Excise Duty on the steel products so manufactured. The respondents rely upon the opinion of Messrs M.N. Dastur and Company Private Limited, who were technical consultants to the Department of Iron and Steel. The opinion, so given, is not conclusive and it will, therefore, be proper to refer to the pleas raised by the respondents.;