2007 (2) TMI 465 - AT - Central Excise

Summary

Issues involved: Appeal against demand upheld and penalty imposed u/s Rule 57S(2)(c) of Central Excise Rules for waste and scrap of capital goods.

Summary:
The appellant appealed against the impugned order upholding a demand of Rs. 45,581 and imposing an equal amount as penalty u/s Rule 57S(2)(c) of Central Excise Rules for waste and scrap of capital goods. The appellant cited a Tribunal decision to argue against the demand, but the Revenue pointed out that the demand included various scraps of capital goods. The Tribunal found that the appellant admitted the scrap was from capital goods on which credit had been availed, making them liable to pay duty under Rule 57S(2)(c). However, considering that the appellants were clearing the scrap under submitted invoices, the imposition of penalty was deemed unsustainable and set aside. The appeal was disposed of accordingly.