2004 (2) TMI 519 - AT - Central Excise

EDM/385-388/2003 Aluminium circles, emerging during course of manufacture of aluminium utensils - Excisability of

Summary

Issues: Determination of excisability of Aluminium Circles falling under Tariff Heading 76.06 of Central Excise Tariff Act, 1985 and liability to duty, applicability of Compounded Levy Scheme under Rule 96ZB, remand for quantification of correct demands of duties, and setting aside of penalties.

Analysis:

1. The judgment addresses the issue of excisability of Aluminium Circles at an intermediate stage during the manufacture of Aluminium Utensils. The Tribunal notes that the issue had been previously decided against the appellants in an earlier order. While confirming that Aluminium Circles are excisable goods, the penalties imposed are set aside due to a reasonable belief held by the appellants that the goods were not liable to duty.

2. The appellants argue that the demands were confirmed under the Compounded Levy Scheme under Rule 96ZB, which they never opted for. They contend that the normal tariff rate should apply, and request a remand for quantification of the correct demands as this point was not raised before the original adjudicating authority. The Tribunal agrees to set aside the impugned orders and remand the matter for further examination.

3. The judgment emphasizes that the issue of excisability of Aluminium Circles has been settled against the appellants based on a previous order. However, the Tribunal acknowledges that the quantum of duties confirmed under Rule 96ZB was not raised before the original adjudicating authority. Therefore, the matters are remanded to the Assistant Commissioner for a limited examination of the appellants' contentions regarding the quantum of duties.

4. Regarding the penalties imposed, the Tribunal follows its earlier orders and sets aside the penalties imposed on some of the appellants. The Commissioner (Appeals) had already dropped penal proceedings against some appellants, and the Tribunal maintains consistency by setting aside penalties in line with previous decisions.

5. In conclusion, all the appeals are disposed of accordingly, and stay petitions are also resolved. The judgment provides a comprehensive analysis of the issues raised, including the excisability of Aluminium Circles, applicability of the Compounded Levy Scheme, quantification of duties, and setting aside of penalties, ensuring a fair and thorough examination of the legal aspects involved in the case.