2004 (10) TMI 253 - AT - Central Excise

Summary

Issues:
Revenue appealing Commissioner's decision on Modvatable Mercury clearance.

Analysis:
1. Facts and Background:
- Preventive Officers observed assessee clearing Mercury without following Central Excise procedures.
- Assessee switched to Membrane Process from Mercury Process for Caustic Soda manufacturing.
- Statements revealed Mercury clearance without payment of Central Excise duty.

2. Availing Modvat Credit:
- Assessee availed Modvat credit on input Mercury from 1991 onwards.
- Clearances of spent Mercury without payment of duty raised concerns.
- Scrutiny showed discrepancies in availed Modvat credit and clearances.

3. Legal Compliance:
- Failure to file classification declaration and follow prescribed procedures highlighted.
- Demand raised under Section 11AC for Central Excise duty on spent Mercury clearances.

4. Judgment Analysis:
- Apex Court precedent cited regarding recovery of credit under Rule 57(1).
- Commissioner's decision questioned for basing on submissions not raised before.
- Interpretation of waste Mercury as spent catalyst affecting duty liability discussed.

5. Final Decision:
- Tribunal found no merit in Revenue's appeal.
- Revenue's appeal dismissed, cross objection disposed accordingly.

6. Conclusion:
- Judgment pronounced on 10-12-2004 by Appellate Tribunal CESTAT, Mumbai.
- Decision favored assessee regarding duty liability on spent Mercury clearances.