1999 (10) TMI 445 - AT - Central Excise

Summary

Issues:
Duty liability on HDPE/PP tapes used in weaving fabrics without payment of central excise duty, calculation of duty liability based on weight of woven fabrics, wastages in the manufacturing process, time-barred demand, suppression of facts by the appellants, reliance on previous tribunal decisions, duty liability based on private records, imposition of penalty.

Analysis:
The appeal concerned the duty liability of M/s. Rajasthan Synthetic Industries Ltd. regarding HDPE/PP tapes used in weaving fabrics without paying central excise duty. The appellants calculated duty based on the weight of woven fabrics, not paying excise duty at the spindle stage but on utilization in weaving. The Revenue contended that any wastage of tapes at the weaving stage should not be exempt, demanding duty on the full quantity transferred to the weaving section. The Collector confirmed a demand of Rs. 1,06,864.21 and imposed a penalty of Rs. 5,000.

The appellants argued that wastage occurred before weaving and the demand was time-barred. They faced difficulties in calculating duty at the spindle stage due to continuous processing. The Revenue asserted that duty liability was at the tape stage, emphasizing proper duty discharge for wastages in weaving. They claimed the appellants did not disclose deduction of wastage at the weaving stage and justified invoking the extended period of limitation.

The Tribunal found excise duty payable at the tape stage, with duty calculated after weaving. The spindle stage wastages were not considered, and only loom stage wastage was addressed. Previous tribunal decisions were cited, supporting the Revenue's position. The adjudicating authority noted the appellants' suppression of facts and upheld the duty demand based on the appellants' records.

The duty demand of Rs. 1,06,864.21 and a penalty of Rs. 5,000 were upheld. The Tribunal rejected the appeal, finding no merit in the appellants' arguments.