Final Order No. A-589/KOL/2009 arising form in Appeal No. E/EDM/495/2005 and Cross Objection No. 21/2006. Case: Steel Authority of India Ltd. Vs C.C.E., Cus. & S.T. Bhubaneswar-II. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
| Case Number | Final Order No. A-589/KOL/2009 arising form in Appeal No. E/EDM/495/2005 and Cross Objection No. 21/2006 |
| Counsel | For Appellant: Shri Ravi Raghavan, Advocate and For Respondent: Shri B.B. Agrawal, Jt. CDR. |
| Judges | Shri S.S. Kang, Vice-President and M. Veeraiyan, Member (T) |
| Issue | Central Excise |
| Citation | 2010 (250) ELT 151 (Tri - Kolkata) |
| Judgement Date | October 05, 2009 |
| Court | CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal) |
Order:
M. Veeraiyan, Member (T), (Eastern Bench, Kolkata)
1.1 Ex. Appeal No. 495/05 is against the impugned Order No. CCE/BBSR-II/No. 26-Commissioner/2005 dated 12-8-2005.
1.2 Cross Objection No. 21/06 is by the Department connected to the said appeal.
1.3 As the issues involved are common, the appeal and the cross-objection are being dealt with for this common Order.
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Heard both sides.
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The relevant facts in brief are that the appellants manufacture what are known as ''Slag Pots or Slag Ladle Cups'' by using casting technology through casting of liquid steel in Heavy Steel Casting Section of foundries. During the period from September, 1999 to September, 2004, the appellants manufactured 125 numbers of Slag Pots/Slag Ladle Cups, out of which 119 numbers were used for captive consumption without payment of duty. They initially classified the said goods under Chapter Heading 7325.10 of the Central Excise Tariff Act, 1985 and availed the benefit of Notification No. 67/95-C.E., dated 16-3-1995. Subsequently, they classified the said product under Chapter Heading 8454.10 and availed the benefit of the said Notification. The Department issued a show cause notice alleging wilful misclassification by the appellants and proposing classification under Chapter Heading 8609.00 and proposing recovery of duty of Rs. 4,00,74,079.00 and proposing for imposition of penalty. The Commissioner vide the impugned Order upheld the classification as proposed in the show cause notice and held that they are not eligible for the benefit of the Notification No. 67/95-C.E. and confirmed the demand of duty of Rs. 4,06,53,778.00 along with the interest and imposed an equal amount of penalty.
4.1 According to the learned Advocate, the nature and specifications of the product in question are as follows:-
"A ladle weighs approximately 21 MT to 28 MT with a carrying capacity of 15 Normal Cubic Meter (NM3) of Liquid Slag. The temperature of the Liquid Slag discharged from the blast furnaces is between 1400 degree to 1450 degree Centigrade. The basic purpose of the Ladle is to collect very hot liquid slag discharged from the blast furnaces for being transferred to the next stage(s) of the manufacturing process. Slag Pots/Slag Ladle Cups (Ladles) carrying a substantial volume of very hot liquid slag, are lifted by EOT cranes and mounted on specially designed Slag Cars which move on fixed railway lines laid for the purpose within the plant premises with a view to ensure safety in the process of handling of the liquid slag and convenience thereof.
The fixed Railway Lines laid down for movement of the Ladle Cars, are neither used nor suitable for movement on it of Railway/Tramway Vans/Wagons as is understood in the common parlance."
4.2 He submits that the product in question is specially meant for use in foundries and designed for handling liquid slag as hot as 1400 degree to 1450 degree Centigrade discharged from blast furnaces for being transferred to the next stages of manufacturing process. Ladles are specifically mentioned in Chapter Heading 84.54. On the other hand, Chapter 86 relates to containers including containers for the transport of fluid specially designed and equipped for carnage by one or more modes of transport. The Chapter 8454.10 is more specific in so far as the products in question are involved.
4.3 He also submits that similar products known as ''Torpedo Ladle Cars'' meant for receiving molten metal from a furnace and pouring in the converters or moulds have been held to be classifiable under Sub-Heading 8454.00 by the Tribunal in the case of...
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