2007 (11) TMI 690 - AT - Central Excise

Summary

Issues involved:
The issues involved in this case include diversion of furnace oil, duty demands on imported furnace oil, duty demand on short receipt of furnace oil, demand on clandestinely removed yarn, duty demand on clearance of waste, confiscation of furnace oil, imposition of penalties, and personal penalties on individuals.

Duty demands on imported furnace oil:
The appellants procured fuel for electricity generation under EOU scheme. The demands were made for duty evasion on furnace oil allegedly diverted to another EOU unit. The Tribunal found no intention to evade duty as the oil was used within the EOU framework. The demands were set aside due to procedural errors and lack of malafide intent.

Duty demand on short receipt of furnace oil:
A demand was made based on short receipt of furnace oil, but it was found to be based on presumption and not corroborated by evidence. The demands were not upheld as there was no concrete proof of short deliveries.

Confiscation of furnace oil:
Confiscation of furnace oil was ordered by the Commissioner, but the Tribunal found no evasion of duty on the transferred oil. As the oil was not available for confiscation, the redemption fine was set aside.

Demand on clandestinely removed yarn:
Demands were raised on clandestinely removed yarn, but the Tribunal directed a reworking of the duty applicable based on previous Tribunal decisions regarding duty payments by EOUs.

Duty demand on clearance of waste:
The demand on clearance of waste was challenged as documents were not furnished to determine the classification of waste. The Commissioner was directed to re-determine the duty demand after providing necessary documents and hearing the appellants.

Imposition of penalties:
Penalties were imposed on the appellants and individuals under various rules. The determination of penalties was deferred pending quantification of demands. The appeals were partially allowed and partially remanded for further proceedings.