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TMI Blog1998 (12) TMI 258X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, confirmed the duty demand of Rs. 6,20,931.00 against M/s. V.K. Oils (P) Limited and imposed a penalty of Rs. 1.5 lac on M/s. V.K. Oils (P) Limited and also a penalty of Rs. 75,000/- imposed on M/s. Hindustan Lever Limited. Being aggrieved by this order, these two appeals have been filed by the appellants. 2. The facts of the case briefly stated are that on 8-9-1993, Central Excise Officers visited to the factory premises of M/s. Hindustran Lever Limited who are engaged in the manufacture of excisable goods and availing the credit of duty paid on the inputs. A scrutiny of the records showed that they were transferring Nickel Catalyst after availing Modvat credit, to M/s. V.K. Oils (P) Ltd. under Rule 57F(2) for processing Hardened ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e quoted. M/s. Hindustan Lever Limited sought permission to remove without payment of duty Nickel Catalyst on which Modvat credit had been taken by them. The permission was granted by the Asstt. Collector. M/s. Hindustan Lever Limited had undertaken the responsibility of discharging duty liability on the finished goods. However in their application they did not declare spent Nickel Catalyst produced from the inputs sent by them to M/s. V.K. Oils without including the value of the raw material in the assessable value of the finished products. It was alleged that they have suppressed the material facts. It was ascertained that M/s. V.K. Oils (P) Ltd. had consumed 444.255 MTs of Spent Nickel Catalyst for the manufacture of 12.250 MTs of Nickel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ened; that appropriate duty of Excise was nil and, therefore nil, duty was paid; that under Note. No. 19/88, dated 1-3-1988 spent Nickel Catalyst was exempt. After careful consideration of the submissions made, the Collector held as indicated above. 5. Shri G.S. Bhangoo and Shri P.K. Mittal, ld. Advocates for the two appellants reiterated submissions made before the lower authorities. In support of their contention, they cited and relied upon the decision of the Apex Court in the case of Texmaco Limited v. CCE [1995 (77) E.L.T. 501 (S.C.) = 1991 (37) ECR 369 (S.C.)]. They also cited and relied upon the decision of the Apex Court in the case of Hindustan Steel Limited v. State of Orissa [1978 (2) E.L.T. (J 159)] wherein the Apex Court held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... talyst is obtained in the process of hardening of Rice Bran oil; that this spent Nickel Catalyst is used in the manufacture of Nickel Sulphate and Nickel Carbonate; that the Spent Nickel Catalyst is the raw material for the manufacture of Nickel Carbonate and Nickel Sulphate, therefore, inclusion of the value of Spent Nickel Catalyst in the value of Nickel Sulphate and Nickel Carbonate was necessary. Ld. JDR submitted that it was contended that M/s. Hindustan Lever Limited had permitted M/s. V.K. Oils (P) Ltd. to retain Spent Nickel Catalyst. He submitted that this argument is not convincing inasmuch as the Spent Nickel Catalyst is saleable commodity, has a value inasmuch as it is used as raw material for the manufacture of Nickel Carbonate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into consideration. Looking to the submissions made, we agree that there was undervaluation. Hence, we do not see any reason to interfere with the confirmation of demand of Rs. 6,20,931.00. The second issue was that of Limitation. We have carefully considered the rival submissions on the issue. We note that spent Nickel catalyst has a ready market, it is a saleable commodity and is neither a trash, dross or skum but is a material used for manufacture of Nickel carbonate/sulphate. The value of this item was not declared. There is a specific provision under Rule 57F (2) that the waste, if any, arising in the course of any operation mentioned in sub-rule (4) shall be returned to the factory of the manufacture of final product. In the instant c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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