Law: Central Excise Act, (I of 1944)

Section: 3B,3

Central Excise Act (I of 1944)--- ----Ss. 3-B, 12-A & 36-C---S.R.O. 798(I)/90, dated 30-7-1990---Liability to pay central excise duty and additional duty-Exemption--Claim for---Appeal against of Excise and Sales Tax Appellate Tribunal---Appellant who was a manufacturer of PVC pipes, had supplied UPVC riser pipe and top sleaves to UNICEF and cleared same without payment of central excise duty payable thereon, presuming the same to be exempted under S.R.O. 798(I)/90 dated 30-7-1990---Order­ in-original was passed against appellant holding him liable to pay central excise duty along with additional duty as stipulated under S.3-B of Central Excise Act, 1944 in addition to a penalty---Contention of appellant was that parts of machinery used in process directly connected with extraction of minerals, were covered by definition of machinery---S.R.O. 798(I)/90 dated 30-7-1990, contained exemption to central excise duty only to machinery and equipment which were produced by a unit and supplied against international tenders to the projects financed out of funds provided by the international loans or aid giving agencies--Definition of machinery was also provided in the said S.R.O.---UPVC riser pipes supplied by appellant to UNICEF were classifiable under PCT heading 3917 of the Tariff and those pipes could not be termed as machinery and equipment as said pipes were of specific size, length and diameter and were neither machinery nor equipment---Meaning of term "machinery" could not be stretched too far to bring in its ambit the UPVC riser pipes---Non-payment of central excise duty in the present case, was not deliberate, but was due to misinterpretation of S.R.O.---Appellant, in circumstances was not liable to pay any additional central excise duty---Appeal was allowed to the extent of waiver of additional tax, but impugned order to the extent of levy of central excise duty, was upheld. JUDGMENT SYED HAMID ALI SHAH, J.----Relevant facts of the case are that the appellant is a manufacturer of PVC pipes under a valid Central Excise Licence. In the year 1996, the appellant supplied UPVC riser A pipe and top sleaves to UNICEF and cleared the same without payment of central…

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