2007 (7) TMI 630 - AT - Central Excise

Summary

Issues involved: Appeal against demand of duty and penalty on waste and rejects, appeal against non-demand of customs duty, imposition of penalties, and non-demand of interest.

Demand of duty on finished goods:
The Commissioner confirmed excise duty on waste and rejects as finished products and imposed penalties. The department argued that this confirmation was in order, citing a previous Tribunal decision. The Tribunal found this submission acceptable.

Demand of duty on inputs:
The department appealed against the non-demand of customs duty on inputs used in the manufacture of waste and rejects. They claimed the goods were cleared in violation of Customs Act provisions. However, the Tribunal noted that the raw materials were issued for manufacture and the finished goods were cleared with permission. As there was no diversion of duty-free raw materials for another purpose, the Tribunal upheld the Commissioner's decision of non-demand of duty on raw materials and no penal action.

Judicial precedent:
The Tribunal referred to a previous case where appeals in similar circumstances were dismissed. This case supported the decision to dismiss the appeals by both the Department and the respondents.

In conclusion, the appeals by the Department and the respondents were dismissed based on the findings related to the demand of duty on finished goods and the non-demand of duty on inputs. The Tribunal upheld the Commissioner's decision and cited judicial precedent to support their ruling.