ORDER
V.K. Agrawal, Member (T)
1. In this Appeal filed by M/s. Ginvic Steels Pvt. Ltd., the issue involved is whether Central Excise duty is payable by them on the alloy steel ingots manufactured by the job worker out of the raw materials given by them under the Notification No. 214/86-C.E.
2. Shri Gagan Kohli, learned Advocate, submitted that the Appellants manufacture alloy steel forged products; that they were sending raw materials to job-worker for conversion into alloy steel ingots; that three separate show cause notices were issued to them; that under show cause notice dated 8-5-98, the facility of job work was proposed to be disallowed; that as per notice dated 25-5-98, the duty was demanded on the ground that they were not entitled to get the job work done; that the notice dated 17-12-97 was issued for demanding duty on ingots manufactured on job work basis. The learned Advocate, further, submitted that they had not received the notice dated 17-12-97 which is the subject matter of present Appeal; that when they received the notice for hearing, they pointed out to the Adjudicating Authority about non-receipt of show cause notice by them; that a copy of the notice was given to them thereafter; that the demand is hit by time limit; that as the ingots had been manufactured by the job worker, duty is not payable by them. He finally submitted that on 17-12-97 the work was going on in the factory and as such the question of pasting the notice on the gate does not arise; that under Section 37C of the Central Excise Act, any notice is first to be served by tendering or sending by registered post and in case it cannot be served in that manner, by affixing a copy to some conspicuous part of the factory.
3. Countering the arguments, Shri M.P. Singh, learned DR, submitted that it is not mandatory under Section 37C of the Act to first send the notice by the Registered Post; that it is open to the Department either to send the notice by registered post or to affix the same to some conspicuous part of the factory. He also submitted that as the Appellants were availing of exemption from payment of duty during the material time, the benefit of Notification No. 214/86-C.E. was not available to them.
4. We have considered the submissions of both the sides. The Appellants have since beginning contended that the show cause notice dated 17-12-97 was not received by them. The department on the other hand contends that the notice was pasted on the gate of the factory the same day under a panchnama. This fact has to be first established as it has a bearing on the question as to whether the demand of excise duty is within the time limit specified in the Central Excise Act. We, therefore, remand the matter to the Adjudicating Authority with the direction to furnish a copy of the panchnama under which the said show cause notice is said to have been affixed to the gate of the Appellant’s factory and then adjudicate the matter afresh on all aspects in accordance with law and following the principles of natural justice.
5. The Appeal is thus allowed by way of remand.