2008 (8) TMI 708 - AT - Central Excise

Summary

Issues:
1. Duty payment timing and penalty imposition for Generator Sets
2. Duty payment and penalty imposition for Radiators

Analysis:
1. For the first issue regarding the Generator Sets, the appellant initially cleared the sets against CT-3 certificates but later, due to rejection by customers, the sets were returned and stored in a rented godown. The officers suspected the intention to remove them without duty payment. The appellant argued that duty should be paid only upon actual removal after rectification. The advocate acknowledged the duty payment but contested the penalty, emphasizing the duty payment timing and entry in statutory records. The Tribunal found that duty was to be paid upon second clearance from the factory and entry in records was necessary at that point. Consequently, the penalty was set aside.

2. Regarding the Radiators, the appellant cleared them separately from I.C. engines against delivery challans. Despite the appellant's claim that duty was unnecessary due to being part of the engines, duty was paid without contest due to the small amount. The Tribunal confirmed the duty payment for the radiators and reduced the penalty to 25% of the duty amount since it was paid before the show cause notice. Additionally, penalties imposed on individual appellants were set aside. The appeals were disposed of accordingly, concluding the proceedings.

In summary, the Tribunal addressed the issues of duty payment timing and penalty imposition for both the Generator Sets and Radiators, providing detailed reasoning for each decision and ultimately setting aside penalties in certain instances based on the specific circumstances and legal requirements.