9911796707
TMI Blog2004 (11) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... in the show cause notice O.C. No. 1521/95 dated 1-12-95 and Rs. 1,410/- and Rs. 1,764/- as detailed in the Annexure to the show-cause notice O.C. No. 751/96 dated 4-4-96 under Rule 9(1) of the Central Excise Rules, 1944 read with Section 11A of the Central Excises and Salt Act, 1944. However ld. Commissioner (Appeals) has set aside the penalty of Rs. 100/- under Rule 173Q of the Central Excises and Rules, 1944 imposed on the appellants. 2. The brief facts of the case are that the appellants (M/s. Lucas Indian Service Ltd.) are manufacturer of ignition coils and solenoid switches falling under chapter 8511.00 8536.90 of Central Excise Tariff, 1985. They have also availed Modvat credit. On scrutiny of the RT12 returns by the assessee it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that waste oil emerging after use of lubricating oil, coolants, etc. used as capital goods does not fall under residual sub-heading 2710.90 of CETA, 1985. 5. Ld. DR Shri C. Mani while reiterating the order of the Commissioner (Appeals) placed a copy of a letter dated 11-2-2001 received from the Deputy Commissioner stating that M/s. Ramana Electricals had bought the waste transformer oil/waste Trichloroethylene for the purpose of resale in the course of retail trade and that the waste oil is used by the farmers for motor starters. This apart, the bidders in the departmental auctions, who normally deal in such goods were also contacted to ascertain the purpose for which such goods were used. It was reported that the waste oil is normal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho has enclosed a copy of the communication dated 10-2-2004 addressed to the Supdt. of Central Excise, Range 1B by one Ramana Electricals wherein it is stated that purchase of transformer oil made under invoice No. 160 dated 12-9-1996 was for the purpose of release in the course retail trade and that the waste transformer oil is used by the farmers for Motor starters. In the face of this evidence regarding trading in waste oil, the contention of the appellants that the goods in question is neither marketable nor marketed, cannot be countenanced. In the present case, the assessee has taken Modvat Credit on transformer oil and Trichloroethylene and the waste of these oils has been cleared without payment of duty. In terms of Rule 57F(4)(a) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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