2004 INSC 0203
                                    SUPREME COURT OF INDIA

                                  Collector of Central Excise, Calcutta

                                                      Vs.

                                          International Agency (I)

                                           C.A.No.3194 of 1998

                                   (S. N. Variava and H. K. Sema JJ.)

                                                 12.02.2004

                                                JUDGMENT

S. N. Variava, J.

1. This Appeal is against the Judgment of the Customs, Excise and Gold (Control) Appellate
Tribunal (CEGAT), dated 11th February 1998. The Tribunal has, in a one paragraph
Judgment, relied on its earlier decision in Shalimar Paints reported in1 and dismissed the
Appeal of the Appellant. We have seen the Judgment in Shalimar Paints. In that case the
question was whether the manufacture of thinners from the material procured by Shalimar
Paints took them out of the purview of the Notification. In this case, as seen from the Show
Cause Notice, the issue is whether or not the Respondents have complied with the terms of
the Notification inasmuch as they are alleged to have used material procured outside the
factory of production without following the process under Chapter X of the Central Excise
Rules, 1944. This case is therefore not covered by the ratio laid down in Shalimar Paints
case.

2. We, therefore, set aside the impugned order and remit the matter back to the Tribunal for
disposal on merits.

3. The Appeal is disposed of accordingly. There will be no order as to costs.

11997 (22) RLT 280

1  SpotLaw