2004 (5) TMI 390 - AT - Central Excise

Summary

Issues:
1. Appeal against order-in-appeal regarding confiscation and redemption fine of Silico Manganese.
2. Contention of the appellants regarding Silico Slag being waste arising from Silico Manganese manufacture.
3. Revenue's argument on liability of excise duty on Silico Slag.
4. Recording of goods in statutory record and imposition of penalty.

Issue 1:
The appeal was filed against the order-in-appeal passed by the Commissioner (Appeals) concerning the confiscation and redemption fine of Silico Manganese, along with the imposition of a penalty of Rs. 25,000 on the appellants.

Issue 2:
The appellants argued that Silico Slag, considered waste from the production of Silico Manganese, was declared as Dust powder in the declaration under Rule 173B of the Central Excise Rules. They claimed that the Silico Slag was of two grades, Prime Grade, and Sub-Standard Grade, and that they always paid duty when clearing the Sub-Standard Grade Slags in bulk quantities.

Issue 3:
The Revenue contended that although Silico Slag is waste, it is still liable for excise duty, especially when the quantity is not recorded in the statutory record. Both parties agreed that the Sub-Standard Grade Silico Slag, originating from Silico Manganese, was dutiable. The Revenue argued that since the dutiable goods were not recorded in the statutory record, the confiscation of the goods was justified.

Issue 4:
Considering the facts and circumstances of the case, the judge found no fault in the order confiscating the goods, as the dutiable goods were not properly recorded. However, the redemption fine was reduced to Rs. 30,000, and the penalty was reduced to Rs. 5,000. The appeal was disposed of accordingly.

This detailed analysis covers the key issues involved in the legal judgment, outlining the arguments presented by both parties and the judge's decision on each aspect of the case.