2010 (11) TMI 330 - AT - Central Excise

Demand together with interest - Process loss - The permission granted to the assessees by the Commissioner (Appeals) for movement of semi-processed inputs and binding them to pay duty on any loss occurring either during transit or in the process of manufacture cannot be relied upon to bind the assessee to pay duty on the process loss - Since there is no insurance for invisible loss, such loss is not covered by the condition contained in the permission letter granted to the assessees for movement of semi-processed inputs - Hence, set aside the impugned order by which demand of duty has been confirmed together with interest - Allow the appeal.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellant, setting aside the duty demand on loss arising during the manufacture of copper cathode. The Tribunal found merit in the submission that duty liability cannot be imposed on process loss based on a circular and previous orders. The appeal was allowed, overturning the demand of duty and interest.