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TMI Blog2016 (1) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... ignored or whether the duty is to be demanded on the portion of aluminium ingots lost in such excess wastage? Held that: - the quantum of ingots which has been consumed towards wastage beyond the norm of 6% is to be considered as utilised beyond the scope of the permission for procurement of duty free inputs. However, since absolutely no evidence of diversion or suppression is on record, I find it difficult to sustain the charge of suppression and invoking the extended time limit for demand of such duty - All the demands are to be paid along with interest. In the absence of any suppression, there is no justification for imposition of penalty and the same are set aside. Appeal disposed off - decided partly in favor of appellant. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tside the unit for job work for manufacture of the final product are to be returned to the unit after job work or may be removed without payment of duty under bond for export from the job workers premises. Also the waste or scrap or remnants generated during such processes at the job Worker's premises is either returned to the unit or is cleared on payment of duty as if cleared into DTA by the said unit. Further, as per S.No. C27 of the standard input-output norms notified under Duty Exemption Scheme read with provisions of para 6.8 (e) of the Foreign Trade Policy 2004-2009, scrap/waste/remnants to the extent of 6% is admissible for manufacture of Aluminium Castings from Aluminium ingots. The assessee had imported 27,81,129 kgs. of alum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rting the same into the aluminium castings. During this process, there has been losses' including wastage generated. The total waste as well as invisible losses were in the range of 9.37% to 9.98% for different periods of time. As per the norms notified by Assistant Development Commissioner for such wastage, up to 6% generation of aluminium scrap is permissible. Since the loss in their case is over and above is norms of 6%, Revenue has demanded the Customs/Excise duties on the corresponding weight of aluminium ingots procured duty free. He further submitted that there is nothing on record to suggest that the excess exemption of aluminium ingots has been on account of any diversion. He also submitted that in the relevant two show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the order of 9.37% to 9.98% during the period 2003-2004 to 2005-2006. In respect of scrap generated beyond the norms of 6% in the impugned order customs as well as excise duty have been demanded in respect of quantum of ingots proportional to the excess quantum of scrap generated. 7. From the record, I find that no evidence has been brought on record by Revenue to indicate that any part of such aluminium ingots has been diverted. Hence the entire quantum of aluminium ingots procured have, in fact been, utilised for production of final products. However, part of the ingots which has been lost in the form of wastage is more than the norm of 6%. Under the circumstances, the question is whether such excess exemption is to be ignored or whe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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