2005 (10) TMI 347 - AT - Central Excise

Summary

Issues:
1. Duty demand on clearances of goods including inspection charges in assessable value.
2. Confiscation of waste, scrap, and seized goods.
3. Imposition of penalties under Section 11AC and Rule 173Q.

Analysis:

1. The Appellate Tribunal upheld the duty demand of Rs. 9,450 on clearances of goods to M/s. BHEL, which included inspection charges in the assessable value of admiralty brass tubes. The Tribunal found that the inclusion of inspection charges and duty demand was justified as the inspection was mandatory for goods supplied to M/s. BHEL and was conducted before the removal of goods. Therefore, the duty demand by including inspection charges was upheld.

2. Regarding the confiscation of seized goods, the Tribunal noted that the General Manager admitted that the goods were fully manufactured and not recorded in the RGI register. As a result, the confiscation of the seized goods was deemed sustainable. Additionally, the confiscation of waste and scrap was also upheld by the Tribunal. The penalty under Section 11AC was found to be justified, along with the penalty under Rule 173Q for contravention of rules. However, considering the overall circumstances of the case, the Tribunal decided to reduce the penalty under Rule 173Q to Rs. 50,000.

3. In conclusion, the Tribunal, after reducing the penalty under Rule 173Q, upheld the impugned order and rejected the appeal. The duty demand, confiscation of goods, and penalties under Section 11AC and Rule 173Q were all upheld, with a reduction in the penalty amount under Rule 173Q to Rs. 50,000.