2007 (1) TMI 328 - AT - Central Excise

Summary

Issues:
The judgment involves the interpretation of Rule 57CC of the Central Excise Rules, 1944 in relation to the clearance of EOT cranes without payment of duty under a specific notification.

Summary:
The appellants, manufacturers of EOT cranes, cleared one crane to SHAR in Andhra Pradesh without payment of duty under Notification No. 10/97-C.E. and reversed input duty credit. The authorities demanded 8% of the price of the goods cleared without duty payment. The penalty imposed was later vacated. The appeal challenges the demand of 8% of the goods' price.

Despite no representation from the appellants, the findings of the lower authorities were reiterated by the learned SDR.

Upon considering the appeal grounds and submissions, it was found that Rule 57CC applied to manufacturers engaged in the production of dutiable and exempt final products. The appellants argued that clearance under an exemption notification did not change the nature of the product. As the EOT cranes were cleared to other buyers with duty payment, Rule 57CC did not apply in this case. Additionally, the goods cleared to SHAR were without availing input duty credit, and the party's conduct was not detrimental to revenue.

Consequently, the impugned order was set aside, and the appeal was allowed.