2018 (7) TMI 1920 - AT - Central Excise

Classification of goods - cut short pieces of the insulated wire and cable - whether classified under sub-heading 8544.00 or not? - Held that - These cut pieces of wires and cables cannot be considered to be wires and cables falling under said chapter heading. They are merely scrap arising in the course of manufacture of wires and cables and they are of no use for any one - appeal dismissed - decided against Revenue.

Summary

Issues: Central Excise Valuation Rules contravention, Recovery of duty, Disallowance of CENVAT credit, Interest payment, Penalty imposition.

Central Excise Valuation Rules Contravention: The Respondent cleared cut-pieces of wires & cables as waste & scrap, leading to a Show Cause Notice alleging violations of Rule 5 of Central Excise Valuation Rules, 2000. The Adjudicating Authority imposed Central Excise duty, education cess, disallowed CENVAT credit, and ordered interest payment and penalty under relevant provisions. The Lower Appellate Authority set aside certain demands but upheld others, leading to an appeal before the Tribunal by the Revenue.

Recovery of Duty: The Adjudicating Authority ordered the recovery of Central Excise duty, education cess, and disallowed CENVAT credit from the Respondent for contraventions of various rules. The Lower Appellate Authority set aside some demands but upheld others, leading to a mixed outcome in terms of duty recovery. The Tribunal referred to a previous decision in the Respondent's case to uphold the impugned order, rejecting the appeal filed by the Revenue.

Interest Payment: The Adjudicating Authority ordered the payment of interest at the appropriate rate by the Respondent for the violations in accordance with the relevant provisions. The Lower Appellate Authority upheld the interest payment on confirmed demands. The Tribunal sustained the decision on interest payment, as per the impugned order, rejecting the Revenue's appeal.

Penalty Imposition: The Adjudicating Authority imposed a penalty equivalent to the recoverable amounts on the Respondent under Section 11AC of the Act. The Lower Appellate Authority reduced the quantum of penalty imposed. The Tribunal upheld the modified penalty amount, reducing it to a specific sum, in line with the decision on the impugned order, and rejected the Revenue's appeal.

In conclusion, the Tribunal upheld the impugned order, rejecting the Revenue's appeal based on the decision in the Respondent's own case and the interpretation of waste and scrap of wires and cables as not falling under the relevant tariff heading. The Tribunal found no reason to interfere with the Lower Appellate Authority's decision, sustaining the order and rejecting the Revenue's appeal.