IN THE CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL, KOLKATA REGIONAL BENCH – COURT NO.1 (Arising out of Order-in-Original No.DGR-EXCUS-000-COM-021-16-17 dated

24.01.2017 passed by Commissioner of CGST & Central Excise, Durgapur M/s Steel Authority of India Limited (Durgapur Steel Plant, Durgapur-713203, West Bengal)

Appellant VERSUS Commissioner of CGST & Central Excise, Durgapur (Satyajit Roy Sarani, City Centre, Dist.-Burdwan, Durgapur-713216)

Respondent APPERANCE :

Shri Abhijit Biswas, Advocate for the Appellant Shri P.Das, Authorized Representative for the Respondent CORAM:

HON’BLE MR.ASHOK JINDAL, MEMBER (JUDICIAL)

HON’BLE MR.K.ANPAZHAKAN, MEMBER (TECHNICAL)

FINAL ORDER NO.75366/2026 DATE OF HEARING : 11 MARCH 2026 DATE OF DECISION : 11 MARCH 2026 Per Ashok Jindal :

The appellant is in appeal against the impugned order.

2. The facts of the case are that the appellant has integrated steel plants situated at different places in the country, wherein it undertakes manufacture of various iron, steel and allied products falling under Chapters 72, 73, 74 and 86 of the Central Excise Tariff Act, 1985. One such integrated steel plant of the appellant is situated at Durgapur in the State of West Bengal and is known as “Durgapur Steel Plant”. The present appeal relates to the said Durgapur Steel Plant (“DSP”) of the appellant.

2.1 For the purpose of carrying out manufacturing activity at its integrated steel plant at Durgapur, DSP is duly registered both under the Central Excise Act, 1944 read with the Central Excise Rules, 2002 and the Finance Act, 1994 (relating to service tax) read with the Service Tax Rules, 1994 respectively.

2.2 From the relevant materials on record, it would be seen that one of the products which manufactured in the said factory is commonly known as “Burnt Lime”, which comes into existence on processing of limestone. This product is being regularly manufactured and cleared from the said factory since the year prior to 1986. DSP regularly files its returns under the Act. Manufacture and clearance as well as classification of the said goods were/are duly declared. During the said period and thereafter, until the time hereinafter stated, it is also an undisputed fact, evident from the relevant records that the Department, obviously after verification of all documents and legal provisions, came to the conclusion and consistently held that burnt lime manufactured by DSP is classifiable under Chapter Heading 25 of the Central Excise Tariff and is subject to nil rate of duty.

2.3 In the premises DSP was surprised to receive a show cause notice dated August 8, 2012 issued by the then jurisdictional Commissioner of Central Excise & Service Tax, Bolpur wherein it was wrongfully and illegally alleged that DSP by willfully suppressing of the material facts with intent to evade payment of central excise duty had contravened the provisions of the said Rules specified in the show cause notice by classifying burnt lime under Chapter Heading 25 of the Central Excise Tariff but allegedly it was correctly classifiable under Chapter Sub- Heading 28259090 of the Central Excise Tariff and dutiable as such. As per the said show cause notice, the appellant had accordingly not paid central excise duty allegedly payable on burnt lime, amounting to a total of Rs.2,74,59,934/- (including education cess and secondary & higher education cess), cleared from the said factory during the period July 2007 to May 2012. The show cause notice on the said allegation proposed recovery of the said sum of money, along with interest thereon, under Section 11A (1)/11A (4) and Section 11AB/11AA of the Act respectively. The show cause notice further proposed imposition of penalty upon DSP under the provisions of Rule 25 of the said Rules read with Section 11AC of the Act.

2.4 The aforesaid show cause notice was thereafter followed by 4 (four) periodical show cause notices dated June 21, 2013, May 21, 2014, May 5, 2015 and March 30, 2016, covering the periods J