2003 (12) TMI 219 - AT - Central Excise

Summary

Issues:
Whether wires and cables cleared without payment of duty after entry in RG-1 register for testing are liable to duty or not.

Analysis:
The appeal was filed by M/s. RPG Cables Ltd. against the Order-in-Appeal passed by the Commissioner of Central Excise (Appeals), Bangalore. The main issue to be decided was whether wires and cables cleared without payment of duty after entry in RG-1 register for testing are liable to duty or not. The appellant's advocate argued that the wires and cables were tested as per customer requirements, and duty was paid on the scrap generated after testing. He cited previous Tribunal decisions to support the argument that cables used for mandatory quality control tests should not be considered excisable goods. On the other hand, the Revenue representative contended that the appellants failed to prove that the quality control tests were mandatory and did not maintain proper records. The Tribunal acknowledged the importance of mandatory quality control tests exempting goods from excise duty if properly accounted for. However, they noted that the appellants did not follow the prescribed procedure for removal of wires/cables for inspection and tests as per the Trade Notice. The Tribunal found that the appellants did not provide the Department with the necessary information to verify the testing process and scrap generated for remission of duty. Consequently, the lower authorities' decision to demand duty was upheld, and the appeal was rejected.