2003 (9) TMI 592 - AT - Central Excise

Summary

Issues:
Violation of Central Excise Law leading to penalty imposition.

Analysis:
The judgment by the Appellate Tribunal CESTAT, Mumbai, involved the issue of confirming the demand of duty on waste and scrap generated in the factory of job workers. The appellant did not dispute the duty demand but argued that the duty was not paid due to a bona fide belief that it was not applicable. The appellant also highlighted the invisible waste, claiming it to be 30%, while the Revenue considered only 15% for duty liability calculation. The appellant's argument on invisible waste was limited to the penalty, not the duty confirmed.

The Revenue, represented by the Joint CDR, emphasized that a violation of the Central Excise Law occurred, justifying the imposition of a penalty. The Revenue left the quantum of penalty to the discretion of the Bench.

Considering the submissions from both sides, the Tribunal found the penalty of Rs. 10 lakhs to be excessive. Since the duty was fully deposited by the appellants, the penalty was reduced to Rs. 50,000. Despite this modification in the penalty amount, the appeal was rejected, affirming the duty demand while adjusting the penalty imposed.