9911796707
TMI Blog2002 (11) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... inal demand of Rs. 1,52,37,319/- after deducting the amount already paid of Rs. 1.35 crore) and penalty equal to the duty. The other applications are for waiver of deposit of penalties as follows: Mehta Trading Corporation Rs. 50 lakhs Kohinoor Trading Company M.H. Steel Corporation Rs. 1 lakh each Loha Ispat Limited B. Melaram Sons Ayushman Steels Ltd. Rs. 50,000/- each 2. Mahindra Mahindra Ltd., the assessee, is engaged in the manufacture of steel castings. For this purpose, it acquires scrap, mills laid sown in its induction furnace and utilises the molten metal for casting of the goods in question. It had based orders on various dealers for supply of cold-rolled c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it purchased from various dealers and that it took the credit on duty shown to have been paid on such scrap. Prima facie the Commissioner has been unable to show any conscious involvement by the assessee or knowledge in any substitution. The departmental representative was unable to emphasise that the scrap that the assessee received was not CRCA scrap; among the scrap that was found in the premises was one umbrella handle; among the suppliers of the scrap to the assessee is B. Melaram Sons who makes ships and sells such scrap. These facts may prima facie suggest that the assessee received at least some quantity of scrap other than duty paid scrap. However, as we have noted, there is nothing to show its conscious involvement, and the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods. The Commissioner has found that this applicant was needlessly delaying the proceedings asking for documents. The fact remains however that the show cause notice listed 62 documents including various files, registers, etc., copies of none of which were supplied to any of the noticee and that they unnecessarily approached the Assistant Commissioner for inspection. The letter dated 20th September, 2000 of the Assistant Commissioner to the applicant indicates supply of some of the documents. We, therefore, find prima facie merit in the contention that this applicant was not given sufficient opportunity of being heard on its case. The contention of the Advocate for M.H. Steel Corporation and Kohinoor Trading Company is that there is nothi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnace. There is however no contravention of law in the assessee having received and utilised scrap other than the CRCA scrap. That is a matter between it and the suppliers. The department s interest would arise only in a situation where scrap of whatever amount that the assessee received or shown not to be duty paid and supplied under documents showing its payment of duty on which the assessee took credit. We are not of the view that this requirement has been satisfied. In other words, the mere presence of non-duty paid scrap and duty paid scrap in the premises of the dealers who supplied material to the assessee, and that the fact that somewhere along the way the scrap lost its identity as CRCA cannot themselves prima facie justify that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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