2007 (6) TMI 400 - AT - Central Excise

Summary

Issues involved:
The appeal filed by the Revenue challenging the demand of duty on "Spent Pacol Catalyst" cleared to a job worker, classification of the product, exemption from duty, and procedural lapses under Rule 57F(4) of the Central Excise Rules, 1944.

Classification and Duty Demand:
The Revenue challenged the demand of duty on the "Spent Pacol Catalyst" cleared to a job worker, claiming it should be classified under SH 7101.90. The Commissioner (Appeals) held that the "spent catalyst" was not excisable and set aside the duty demand as it was ultimately exported as "Platinum Sponge." The Revenue argued that duty should be paid on the waste and scrap when cleared for home consumption, regardless of subsequent export. The Tribunal noted the change in classification sought by the Revenue from Heading 26.20 to SH 7101.90 and considered the submissions of both parties regarding the classification under Chapter 71. The Tribunal found that the procedural lapse by the respondents in not following Rule 57F(4) should be condoned, directing that no duty be demanded from the respondents.

Conclusion:
The Revenue's appeal failed concerning the dropping of the duty demand by the Commissioner (Appeals), but succeeded regarding the excisability of the product. The Tribunal disposed of the appeal accordingly, emphasizing the condonation of the procedural lapse and no duty liability on the respondents.