2004 (4) TMI 495 - AT - Central Excise

Summary

Issues: Rectification of mistake application regarding error in computation of duty and penalty.

Analysis:
1. The rectification of mistake application highlighted an error in the computation of duty in the Final Order of the tribunal. The application pointed out that the quantity of production was incorrectly calculated, considering the production of "gullies" (billets) instead of the excisable goods, brass sheets. It was argued that the quantity of brass sheets should be calculated after deducting the waste arising during the conversion process. The appellant contended that the correct duty demand should be Rs. 7,07,742, and a consequential deduction in the penalty amount should also be allowed.

2. Upon perusing the records and hearing both sides, the tribunal found merit in the appellant's contention regarding the error in quantification. The Commissioner had previously fixed the loss in conversion of gullies to sheets at 25%, but the tribunal determined that a higher percentage of loss was not justified. Therefore, a revision of the quantity was necessary after accounting for wastage. Additionally, for the period when sheets were subject to a specific rate of duty, a re-computation had to be done based on that rate. The correct duty amount was recalculated to be Rs. 11,71,343, contrary to the Revenue's contention of Rs. 13,18,202, which was based on an incorrect assessment of the assessable value. The tribunal clarified that the total price realized by the assessee should be treated as cum-duty, inclusive of duty.

3. Consequently, the tribunal revised the duty amount to Rs. 11,71,343 and reduced the penalty amount to Rs. 5 lakhs to align with the reduced duty demand. The order directed the correction of the duty amount and penalty in the Final Order of the tribunal to reflect the revised calculations and adjustments.