2013 (12) TMI 1184 - AT - Central Excise

CESTAT Chennai Upholds Scrap Duty Decision, Imposes Penalties

The Appellate Tribunal CESTAT CHENNAI upheld the lower appellate authority's decision to drop duty demand on scrap but imposed penalties on job workers ... Demand of duty - Duty not paid on the entire quantity of scrap - Demand raised on basis of calculation of what quantity of scrap would have been produced adopting some notional standards - Held that:- lower appellate authority has considered all aspects of the case and has passed a detailed speaking order under which he has dropped the duty demand but has imposed penalties on the job workers while cautioning them to be more careful in future and directing them to maintain proper accounts showing details of scrap generated and cleared on payment of duty - the lower appellate authority has passed a proper and legal order as warranted by the circumstances of the case and the same calls for no interference - Decided against Revenue. The Appellate Tribunal CESTAT CHENNAI dismissed three appeals filed by the department related to duty demand on scrap generated by job workers for machining automobile parts. The lower appellate authority dropped the duty demand but imposed penalties on the job workers for not paying duty on scrap. The authority directed the job workers to maintain proper accounts for scrap generated and cleared on payment of duty.