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TMI Blog2017 (12) TMI 1307X X X X Extracts X X X X X X X X Extracts X X X X ..... uty demand confirmed in the impugned orders cannot be sustained for recovery. Appeal allowed - decided in favor of appellant. - E/51450, 51712/2017–ST [SM] - FINAL ORDER No. 58324-58325/2017 - Dated:- 7-12-2017 - Mr. S.K. Mohanty, Member (Judicial) Present Ms. Surbhi Sinha, Advocate for the appellant Present Shri G.R. Singh, DR for the respondent ORDER Per S.K. Mohanty 1. The issue involved in both these appeals are identical and accordingly, the same are taken up for hearing together and a common order is being passed. 2. Brief facts of the case are that the appellants are engaged in the manufacture of PSC sleeper, which are solely used by Indian Railways for laying down or maintenance of railway track. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h were disposed of vide the impugned order dated 19/05/2017, in confirming the duty demand against the appellants and also penalties were imposed on the appellants. The impugned orders passed by the Ld. Commissioner (Appeal) were challenged by the appellants before this Tribunal. 3. The Ld. Advocate appearing for the appellants submits that PSC sleepers manufactured by the appellant attained the stage of marketability, only when the sleepers are found to be used by the Indian Railways. She further submits that in case of defective sleepers, which were not found fit for use by Indian Railways, the same were sold by the appellants as scrap on payment of appropriate Central Excise duty. Thus, she submits that since the defective PSC sleeper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Central Excise duty on sale of inputs as scrap obtained from broken sleepers. Further I have gone through the letter dated 23/01/2014 of S.E.C. Railway authority which has laid condition to the Noticee not to take the rejected sleepers outside the plant. Thus the inference of removal of goods, as alleged in the SCN, cannot be accepted. 7. PSC sleepers, in this case, before inspection and certification by Indian Railways cannot be considered as fully manufactured goods in marketable condition. Hence, there was no necessity of maintaining the RG-1 register, before certification by the inspecting agencies. However, since the appellants entered the entire manufacturing particulars in the RG-1 register, the demand cannot be fastened on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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