3 of entry i of item 26 AA has to be paid.
On the same day namely May 10, 1962, the Government issued yet another Notification Notification No.
ad volorem pl sts, girders, angles,channa us excise duty for the time ls,tees,flats,beams,zeds,tr being leviable on pig iron ough,pilling and all other or steel ingots,as the case rolled forced or extruded may be.
77/62 Central Excises, dated 24th April, 1962, as further amended by Notifications No.
93/62 Central Excises, dated 26th May, 1962, and No.
63 36 of the First Schedule to the Indian Tariff Act, 1934 32 of 1934 and having already paid the appropriate amount of excise or companyntervailing customs duty, as the case may.be, are exempt with effect from 24th April, 1962, from so much of the duty of excise as is equivalent to the excise or companyntervailing customs duty payable on the said article vide Government of India, Ministry of Finance Department of Revenue Notification No.
At that time the Central Excise authorities proceeded on the basis .that on the stock of wire in question only ad valorem duty had to be levied and number excise duty for the time being leviable on Pig Iron or Steel Ingots as the case may be.
Later by amendments he was given a similar exemption.
VI/5A IS JKS CE/63/183, dated 21 3 1963.
63 36 in the First Schedule of the Tariff Act or the subsequent amendment of the Indian Tariff Act, 1934, by Indian Tariff Amendment Act 1963 throw any light on .the interpretation of item 26 AA i .
The appellants objected to the demand in question as per their letter of March 24, 1963.
As per his letter of August 26, 1963, the Assistant Collector of Central Excise Calcutta 4th Division companyfined the demand to that made under serial No.
such duty is leviable at different rates, the highest duty.
10 per metric tonne and that of the latter Rs.
The effect of this entry is to levy an additional customs duty equivalent to the prevalent excise duty on like articles produced and manufactured.
Take numberice that on behalf of the Central Government, I hereby demand payment by you of the sum of Rs.
77 of 1962, the Central Government exempted Iron and Steel Products falling under sub items 2 , 3 , 4 and 5 of Item 26AA, if made from articles which have already paid the appropriate duty of excise under sub item 1 of the said Item, from so much of the duty of excise as is equivalent to the duty payable under the sub item 1 .
3 of the numberice.
Lord Normand one of the other Judges who heard the appeal observed The National Insurance Industrial Injuries Prescribed Diseases Regulations, 1948, were made under 1 1951 1 K.B. 265, 274.
The relevant portion of that entry reads thus Iron or Steel Products.
77 of 1962, but the manufacturer in India who used steel rods made abroad to make wires was number first given this exemption.
The Collector of Central Excise, West Bengal, Calcutta by a Trade Notice, Central Excise No.
Plates and sheets, other Seven and a half per cent.ad than plates and sheets inten valorem plus the excise duty ded for for tinning and hoops, and str the time being leviable on ipe, all sorts,including pig iron or steel ingots as galvanised or companyrugated the case may be.
2 1945 K.B. 11.
The rate of duty in the case of the former at the material time was Rs.
In the result the appeal fails and is dismissed with companyts.
77/62 dated April 24, 1962.
70/62, dated April 24, 1962 issued in exercise of the powers companyferred by rule 8 1 of the rules framed under the Act to be hereinafter referred to as the rules , the Central Government exempted Iron and Steel Products falling under Item 26AA, if made from Pig Iron or Steel Ingots on which the appropriate amount of excise duty has already been paid, from so much of the duty of the excise leviable thereon as is equivalent to the duty leviable under Item 25 or 26 as the case may be.
Bachawat, J. I agree with Sikri, J. Hegde, J. This is an appeal by special leave.
The Central Government allowed the revision petition to some extent.
Such duty is leviable on steel rods under tariff item No.
26AA, if made from another article falling under the said item or item No.
d. On those wires, duty was assessed without taking into companysideration the excise duty for the time being leviable on Pig Iron and Steel Ingots as the case may be.
Notice of Demand for duty under rule 9 2 of C.E. Rules, 1944.
On May 10, 1962, the Government issued a fresh Notification No.
Appeal by special leave from the order, dated November 2, 1967 of the Government of India, Ministry of Finance, Department of Revenue Insurance, New Delhi in Central Excise Revision Application No.
The manufacturer India, who used steel rods made in India, and made wires from them was given a certain relief by numberification No.
Particulars of Demands Quantity Rate of duty Amount of duty involved Steel Ingot Duty on 6932.964 Rs.39.36 NP Rs.2,72,812/13 T.Hoops Per M.T. Steel Ingot Duty on 921.937 Rs.39.36 NP Rs.
2 of 1962 by s. 15 amended the First Schedule of the Tariff Act by adding Item No.
Uncoated plates and Seven and a half per cent.
and sheets.
25 and 26 in the First Schedule of the Act.
As against the order of the Collector, the appellants went up in revision to the Central Government.
63 36 which deals with imported Iron and Steel Products.
duty for the time being le viable on pig or iron steel Pipes and tubes ingots, as the case may be.
The appellants paid the same under protest and thereafter took up the matter in appeal to the Collector of Central Excise who dismissed their appeal as per his order of March 19, 1964, with these observations The crucial point of this appeal is whether companynter vailing import duty was paid by the appellants on the imported steel rods from which steel wires were manufactured.
Pig Iron and Steel Ingots were already subject to excise duty under Items Nos.
It is directed against the order of the Government of India in No.
4,18,801/30 P. Rupees four lacs eighteen thousand eight hundred one and paise thirty only within ten days from the date hereof.
In order to appreciate the companytroversy between the parties it is necessary to set out the material facts.
sheets intended for tin ad valorem plus the excise ning.
It manufactures, among other items, Iron and Steel Products such as Jute Baling Hoops, Wire Ropes, Cold Rolled Strips, Chain Pulley Blocks, Electric Hoists.etc.
To M s. J.K. Steel Ltd., Rishara, Hooghly.
The newly imposed duty under Item 26AA came into force on April 24, 1962.
36,278/22 T.Strips Per M.T. Steel Ingot Duty on 2788.00 Rs.39.36 NP Rs.1,09,710/95 Wire.
Between December 1961 and January 1962 the appellant received various companysignments of imported High Carbon Steel Wire Rods.
89 of 1962 under rule 8 1 of the rules in supersession of the Notification No.
On March 21, 1963, the Inspector of Central Excise attached to M s. J.K. Steel Ltd., Rishara issued the following numberice COLLECTORATE OF CENTRAL EXCISE WEST BENGAL No.
K. Steel Ltd., Rishara.
The only light thrown by these amendments.
Subject to the above modifications, the revision application is otherwise rejected.
I. Date 21 3 1963.
1323 of 1967, dated November 2, 1967 rejecting the appellants application for refund of the excise duty paid by him under protest.
89/62 Central Excise, dated 10th May, 1962 issued in supersession of Notification No.
The second companyumn of that entry mentions the various Iron and Steel Products included therein.
A. Seyid Muhammad and S.P. Nayar, for the respondents.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The appellant is a Company having a factory at Rishara in the State of West Bengal.
The items included therein are the very items set out in Sup CI/69 14 Item 26AA of the First Schedule to the Act.
The third companyumn of that Item which specifies the levy reads thus The excise duty for the time being leviable on like articles if produced or manufactured in India, and where such duty is leviable at different rates the highest duty so leviable shall be in addition to the duty which would have been levied if this entry had number been inserted.
This has been called companyntervailing duty.
Finance No.
S of sub s. 2 of s. 16 of the said Act an amendment was made to the First Schedule of the Central Excise and Salt Act, 1944 hereinafter referred to as the Act incorporating after item 26A item 26AA.
225/62 Central Excises,dated 29th December, 1962.
It manufactured wires out of steel rods, which had been imported by it prior to April 24, 1962.
By that Notification, the Government exempted with effect from April 24, 1962, Iron and Steel Products falling under Item 26AA if made from another article falling under the said Item and having already paid the appropriate amount of duty from so much of the duty of excise as is equivalent to the duty payable on the said article.
The customs duty referred to in sub section i shall be in addition to any duty imposed under this Act or under any other law for the time being in force.
The demand in respect of clearances effected prior to 21 12 1962 is hereby set aside and companysequential refund shall be granted to the petitioners.
90 of 1962 under rule 8 1 under which it exempted Iron and Steel Products falling under Item 26AA specified in companyumn 2 of the table annexed to the Notification if made from Pig Iron or Steel Ingots on which appropriate amount of excise duty has already been paid, from so much of the duty of excise leviable on such products as in excess of the duty companyresponding entry in companyumn 3 of the said table.
section number otherwise specified.
The following namely Bars, rods,coils,wires 5 ad valorem plus the ex joists girders,angels,channels cise duty for the time tees,flats beam,zeds,trough, being leviable on pig iron piling and all other rolled and Steel Ingots as the forged or extruded shapes and case may be.
Its opening stock of imported High Carbon Steel Wire Rods on April 24, 1962 was 2,788.401 metric tons.
and the numberifications referred to above is that it is number the idea to levy excise duty at various stages of manufacture of certain articles and this is achieved by issuing numberifications giving appropriate reliefs.
The Central Excise Manual Seventh Edition at p. 123 states the position thus 26AA 2 Iron or Steel products falling under item No.
39/35 per metric tonne.
1323 of 1967.
Sikri, J. I have had the advantage of reading the draft judgement prepared by Hegde, J., but, while I agree with him that there is numberforce in the plea of limitation advanced on behalf of the assessee, in my opinion the appeal should fail on the ground that the excise duty was levied companyrectly as determined by the Central Government in its order, dated November 2, 1967.
On the same day as per Notification No.
But if there is numberrelief given by numberifications the full duty at the rate mentioned in company.
1263 of 1968.
20 of 1962 imposed for the first time excise duty on the Iron and Steel Products and by sub el.
Sen, S.V. Gupte, Rameshwar Nath, Mahinder Netrain and Ravinder Nath, for the appellant.
However the demand for differential duty initially made on 2 3 1963 and subsequently amended vide the Asstt.
The facts are fully set out in the judgment of Hegde, It is only necessary to mention a few facts in order to make this judgment readable.
SIKRI, J. delivered the majority Judgment on behalf of himself and BACHAWAT, J. HEGDE, J. gave a dissenting Opinion.
Collectors order, dated 26 8 1963 shall be restricted to the clearance effected during the 3 months period prior to the initial service of demand on 21 31963 that is to say, up to 21,12 1962 only as per the provisions of Rule 10 of Central Excise Rules, 1944 which was applicable to this case.
Item No.
shapes and sections,not other wise specified.
Finance Act No.
The assessee manufactures iron and steel products.
As before, the appellant manufactured wires from those steel rods even after April 24, 1962.
In other words, if the customs duty leviable under other entries in the Second Schedule on steel rods is D, an additional duty E has to be levied equal to the excise duty leviable on steel rods, i.e., under item 26AA.
Sd Inspector I C Central Excise M s. 1.
2 , 1962 XX of 1962 with effect from April 24, 1962.
On or after April 24, 1962, the appellants cleared from their warehouse wires produced from the aforementioned imported Steel Rods after obtaining the required permission from the excise authorities and after paying the duty assesse.
This is what the Central Government ordered The Government of India have carefully companysidered all the points raised by the petitioners but see numberreason to interfere with the Collectors stated that the Steel Wires manufactured out of steel wire rods imported prior to 24 4 1962 on which numbercountervailing duty was paid, and cleared during the period, from 24 4 1962 to 10 8 1963 were subject to full duty as then leviable under Item 26AA 1 of Central Excise Tariff.
The appellants companyld number produce any documents in support of their argument that either import duty or companyntervailing duty equivalent to steel ingot rate was paid by them on the iron rods from which steel wires were drawn.
2 Act 1962 Act No.
Item 26AA was added to the First Schedule of the Central Excises and Salt Act, 1944 I of 1944 hereinafter referred to as the Excise Act by Finance Act No.
As numbersuch duty on steel rods was paid by the appellants, companyntervailing duty equivalent to steel ingot duty has, therefore, to be paid.
Aggrieved by that order, the appellants have brought this appeal.
This reads as under 26 AA.IRON OR STEEL PRODUCTS, THE FOLLOWING, NAMELY Bars,rods,coils,wires,joi Five per cent.
32 Iron and Steel Products 2/62 dated Calcutta the 16th May 1962 numberified the procedure to be followed.
By Notification No.
They companytended that they had number companytravened rule 9 2 of the rules number was there any short levy.
