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TMI Blog2007 (2) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... factory one of CPC Green and one as Aluminium Hydroxide Plant. The raw materials for CPC Green Plant are Aluminium Chloride, cupric chloride, crude CPC Blue, Chlorine, caustic soda. During the relevant period for the purpose of the present appeals, the appellants were importing copper bars/scrap and aluminium ingots, which were being used in the manufacture of CPC Green and CPC Blue. The said two products were being exported by them as the final products. It is seen that during the course of manufacture of CPC green, Mother Liquor emerges. The said mother liquor, which is an effluent of the CPC Green Plant mainly contains Aluminium Chloride, Copper etc. and is treated with Sodium Suiphide to get copper as Copper Sulphide. The resultant cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two hundred sixty-six only) for the above goods cleared during the period July, 1999 to September 2003, by invoking the extended period as provided under Section 11A of the Central Excise Act, 1944. The Notice also proposed imposition of penalty in terms of Section 11AC and confirmation of interest under Section 11AB along with proposal to impose penalty under Rule l73Q of erstwhile Central Excise Rules. The said show cause notice culminated into an order passed by the Comissioner confirming demand of duty, as proposed in the notice along with imposition of identical amount of personal penalty under Section 11AC and confirmation of interest under Section 11AB In addition, personal penalty of Rs.5 lac (rupees five lac) was also imposed upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and uninterrupted process. Use of Mother Liquor for manufacture of Aluminium Hydroxide/Copper sludge are distinct, separate processes and inasmuch as the Mother Liquor is manufactured in India, the use of the same for further manufacture of Aluminium Hydroxide and copper sludge would satisfy the conditions of the notification. For the above purpose, they relied on the following decisions of the Tribunal: (a) CCE. v. Vijaya Packaging Industries - 2000 (118) E.L.T. 160 (b) Dhurvco Printers (P) Ltd. v. CCE - 1996 (85) E.L.T. 62 (c) CCE v. Jayna Packaging Pvt. Ltd. - 2000 (122) E.L.T. 150 5. We note that the above three decisions relied upon by the appellants during the course of adjudication stand overruled by the Larger Bench deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reason alone, in our opinion is not enough to say that glycerine and Sodium Sulphate were manufactured out of goods produced in India. Viewed in that light one could reasonably say that glycerine Sodium Sulphate were not manufactured in out of the goods produced in India. 20. We agree with the ld. SDR that there are at least three decision, Century Denium, Vanasthali, Ginny (Supra) which do not brook the concept of immediate parentage. The Referral Bench's reasoning that each of the products i.e. Refined Castor Oil, Hydro Generated Castor Oil, Hydroxy Steam Acid and Recinolic Acid is an excisable product and should be considered as those manufactured in India out of which the impugned goods emerged, does not find favour with us. In the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd penalty. While dealing with the said issues, the Tribunal held that the demand to he barred by limitation on the basis of conflicting opinions about the eligibility of the Notification. It was also observed that there is no justification for imposing penalty. The said decision is reported in 2006 (204) E.L.T. 410 (Tri Mumbai). 8. Admittedly, there were conflicting decisions and different opinions, as regards the eligibility of the assessees to Notification No. 8/97-C.E. It was in view of the said conflicts that the matter was referred to Larger Bench. It is well settled that when two views are holding the field, the assessee adopting interpretation favourable to him can be said to be under a bona fide belief of his entitlement to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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