2004 (11) TMI 440 - AT - Central Excise

Summary

Issues:
1. Duty payment on removal of oily metal aluminum scrap.
2. Validity of circulars permitting duty-free removal.
3. Barred by limitation.
4. Penalty and interest imposition.
5. Job worker's liability.
6. Merits of duty levy on waste solidified molten aluminum.

Analysis:
1. The appellants, engaged in manufacturing goods under the Central Excise Act, faced objections regarding the removal of oily metal aluminum scrap without duty payment. A show cause notice was issued demanding duty, penalty, and interest for the said removals.

2. The Commissioner confirmed the duties based on withdrawn circulars permitting duty-free removal, alleging mala fides on the part of the assessee. However, the appellants argued that the demands were time-barred, as the circulars were withdrawn after the relevant period. They contended that the blame for non-compliance cannot be attributed to intentional evasion, given the department's knowledge and past permissions.

3. The appellants further challenged the penalty and interest imposition, asserting that they cannot be upheld for the demands made, including those up to October 1995. They also argued that the demands on the job worker for unaccounted inputs under Rule 57F(2) were not maintainable.

4. Referring to a precedent, the appellants argued against the duty levy on waste solidified molten aluminum, citing a decision of the Larger Bench. Ultimately, the Tribunal found no grounds for the suppression of facts during the demand period, leading to the setting aside of the Commissioner's order and allowing the appeal.