9911796707
TMI Blog2002 (4) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... s, glass shells etc. For manufacture of the above items they import certain raw material at concessional rate of duty in terms of Notification No. 64/95-Cus. as amended by Notification No. 13/97-Cus., dated 1-3-97 for manufacture of glass shells for TV picture tubes. 3. During the course of scrutiny of records of the manufacturer it was noticed that the appellant had used some quantity of the above raw material in the manufacture of glass shells for computer monitor for which concession was claimed and availed. The assessee paid differential duty, CVD and interest on the inputs contained in glass shells for computer to the extent of 40% of the weight of the imported inputs other than cullet. It was noticed that the appellant had not paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that cullet purchased from market cannot be used in the manufacture of glass shells for computer monitor. After careful consideration of the submissions made the learned Additional Commissioner confirmed a demand of duty of Rs. 15,81,589/-, imposed a penalty of Rs. 15,31,589/-, ordered recovery of interest and also imposed a penalty of Rs. 10,000/- on Shri O.P. Kanojia. 4. Arguing the case for the appellants Shri B.L. Narasimhan, learned Counsel for the appellant submits that the appellant had already paid duty and interest thereon and therefore, he was not pressing the point in so far as the demand for duty and charging interest is concerned. Learned Counsel submits that the fact remains that cullets generated in the process of manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prays that the duty may be sustained and since the quantum of duty was substantial imposition of penalty may also be upheld. 6. We have heard the submissions of both the sides. We note in the instant case that concessional rate of duty was available only on the raw material used in the manufacture of glass shells meant for colour picture tubes. In the instant case the fact remains that part of the cullets was used in the manufacture of glass shell for computer monitor. Since raw material for computer monitor was not exempted, therefore, duty on inputs that went into generation of cullet further used in the manufacture of computer monitor is sustainable in law. We hold accordingly. Interest also becomes chargeable and we sustain the chargi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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