2007 (6) TMI 455 - AT - Central Excise

Summary

Issues Involved:
Appeal against duty imposition on shrimps cleared into DTA, imposition of penalty, exemption claim based on Notification No. 196/94-Cus., and setting aside demand on damaged shrimps.

Duty Imposition on Shrimps Cleared into DTA:
The appeal arose from the Order-in-Appeal confirming duty on 4114 Kgs of shrimps cleared into DTA, along with the imposition of penalties. The Commissioner (Appeals) confirmed the duty and penalties, except for shrimps destroyed/damaged by a fire accident. The Revenue contended that damaged goods are not fit for human consumption, challenging the Commissioner's decision. However, upon careful consideration, the Tribunal found that the shrimps cleared, which were not fit for human consumption, justified setting aside the demand on a small portion. Consequently, the appeal was rejected.

Exemption Claim Based on Notification No. 196/94-Cus.:
The Respondent filed a cross-objection claiming that the shrimps were exempted from duty under Notification No. 196/94-Cus., as amended by Notification No. 56/01-Cus. The Consultant referred to a previous judgment where similar shrimps were held to be not dutiable. While the Respondent did not contest the duty demand confirmation, they argued that the damaged shrimps should not be subject to duty. The Tribunal noted that the Revenue did not dispute that the damaged shrimps were unfit for human consumption post-clearance. Considering the detailed order by the Commissioner and the just nature of dropping the demand on the unfit shrimps, the Tribunal found no merit in the appeal and rejected it.