2000 (5) TMI 822 - AT - Central Excise

Summary

Issues:
1. Grant of exemption under Notification No. 171/88 for waste and scrap.
2. Duty demand on clandestine removal of CTD Bars/M.S. Rounds.
3. Reduction of penalties imposed.
4. Claim of Modvat credit.

Analysis:

Issue 1: Grant of Exemption under Notification No. 171/88 for waste and scrap:
The appeal by the Revenue challenges the dropping of demands by the Commissioner regarding ferrous waste and scrap, claiming it should be deemed duty paid. The Revenue argues that since the raw materials for both ferrous waste and scrap and CTD Bars/M.S. Rounds did not suffer duty, duty should be confirmed for both. The Tribunal's final order established that the raw materials did not suffer duty, thus the benefit of exemption under Notification No. 171/88 for ferrous waste and scrap should not have been granted. Consequently, the Revenue's plea for confirming duty on ferrous waste and scrap was upheld, and the matter was remanded to the adjudicating authority for accurate duty computation.

Issue 2: Duty Demand on Clandestine Removal of CTD Bars/M.S. Rounds:
The Commissioner confirmed a duty demand on clandestine removal of CTD Bars/M.S. Rounds, which was upheld in the final order. The appellants sought a remand for duty computation, citing discrepancies in the figures used for calculation. The Tribunal remanded the matter for the correct duty liability determination, emphasizing that the appellants should be given an opportunity for a hearing. The aspect of penalty for non-payment of duty was to be considered in light of the settled KVS Scheme.

Issue 3: Reduction of Penalties Imposed:
Penalties imposed on the company and individuals were reduced in the final order. The appellants argued that the penalties had been settled under the KVS Scheme. The Tribunal directed the Commissioner to consider the settlement of penalties while re-evaluating the duty computation and penalty aspects.

Issue 4: Claim of Modvat Credit:
The Tribunal upheld the rejection of the claim for Modvat credit, stating that the inputs received were not duty paid, as evidenced by the department. The contentions raised by the appellants regarding duty-paid inputs and Modvat credit were not accepted.

In conclusion, the Revenue's appeal was allowed concerning the confirmation of duty for ferrous waste and scrap, with a remand for duty computation and penalty reconsideration. The Tribunal's decision emphasized the importance of accurate duty assessment and penalty considerations in line with settled schemes.