2004 (10) TMI 445 - AT - Central Excise

Summary

Issues: Duty demand based on production quantity variation and shortage of wires and cables.

Analysis:
1. Duty Demand Based on Production Quantity Variation:
The appellant faced a duty demand of approximately Rs. 54 Lakhs due to discrepancies in the quantities entered in the BIS Register and RG-I Register. The appellant argued that they manufactured wires and cables according to buyer specifications, resulting in variations from BIS standards. The appellant contended that the higher production quantity in the RG-I Register compared to the BIS test quantity indicated no intention to evade duty. The Tribunal agreed, noting that the RG-I Register accurately reflected production, and there was no discrepancy in raw material records. Consequently, the duty demand was deemed unsustainable as there was no evasion of duty.

2. Shortage of Wires and Cables:
Another duty demand of Rs. 58,000 arose due to alleged shortages of wires and cables. The appellant successfully argued that this amount was already addressed in earlier proceedings, rendering the current repetition of the demand unjustifiable. The Tribunal found merit in this argument and concluded that the duty demand was not maintainable. As a result, the impugned order was set aside, and the appeal was allowed in favor of the appellant, granting consequential relief.

In summary, the Tribunal dismissed the duty demands against the appellant, ruling in their favor on both counts. The judgment highlighted the importance of accurate record-keeping and compliance with standards to avoid allegations of duty evasion. The appellant's explanations regarding production variations and past proceedings effectively refuted the duty demands, leading to the appeal's success and relief granted to the appellant.