2004 (4) TMI 244 - AT - Central Excise

Summary

Issues:
1. Duty demand against M/s. Rajesh Casting Pvt. Ltd. for clandestine manufacture and removal of final products.
2. Imposition of personal penalty under Rule 173Q of Central Excise Rules, 1944.
3. Duty demand against M/s. Dodani Steel Inds. for receiving clandestine ingots and manufacturing CTD Bars clandestinely.
4. Dispute regarding the withdrawal of appeal by M/s. Rajesh Casting Pvt. Ltd.
5. Discrepancies in the receipt register maintained by M/s. Dodani Steel Inds.
6. Claim of exemption under Notification 202/88 by M/s. Dodani Steel Inds.
7. Legal evidence requirement for confirming duty demand and penalty.

Analysis:
1. The Commissioner of Central Excise demanded duty against M/s. Rajesh Casting Pvt. Ltd. for clandestine activities. The appeal was deemed withdrawn due to a Supreme Court decision, and the duty demand was confirmed.
2. The duty demand against M/s. Dodani Steel Inds. was based on discrepancies in the receipt register. The appellant argued that the differences were due to various factors and not indicative of clandestine activities. Legal evidence was required for confirmation.
3. The appellant claimed exemption under Notification 202/88, stating that their final product was exempt if manufactured from duty-paid inputs. The Revenue argued that settlement under KVSS did not constitute duty payment and thus, the exemption conditions were not met.
4. The Tribunal found that the entries in the private receipt register were not sufficient legal evidence to confirm duty demand and penalty against M/s. Dodani Steel Inds. The lack of proof of utilizing ingots in manufacturing final products led to setting aside the duty demand.
5. The appeal of M/s. Rajesh Casting Pvt. Ltd. was dismissed as withdrawn, while the appeal of M/s. Dodani Steel Inds. was allowed due to insufficient legal evidence, with consequential relief granted if applicable.