2006 (2) TMI 448

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..... [Order]. This appeal is directed against the duty demand of Rs. 1,38,792/- lakhs and penalty of Rs. 15,000/-. Duty demand relates to scrap of copper/ferrous received by the appellant from their job worker. 2. The facts leading to filing appeal are that the appellant received copper and iron sheets as inputs. These inputs are sent to the job worker for the manufacturing process. The job w .....

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..... y explained by the statement of Shri R.B. Raja, Manager of the appellant. There is nothing on record to take a view that the scrap received from the job worker was clandestinely removed and only the scrap generated in the factory was accounted in the RG-1 register cleared on payment of duty. The learned Counsel also submits that taking resort to proviso to Section 11A of the Central Excise Act was .....

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..... . There is no determination as to what was the total scrap arising in the hands of the appellants and the quantity of scrap cleared on payment of duty was less than the total quantity. The appellant s explanation also was that the scrap was stored together and accounted together and disposed of after payment of duty. There is nothing contrary to this explanation. Since the scrap of both kind were .....

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