TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether the prepared diluted aluminium paint, made for immediate captive use in painting the assessee's own empty drums, was dutiable as excisable goods; (ii) Whether the demand on aluminium powder floor sweepings was sustainable, and whether the penalty required interference.
Issue (i): Whether the prepared diluted aluminium paint, made for immediate captive use in painting the assessee's own empty drums, was dutiable as excisable goods.
Analysis: The paint was prepared only for immediate use in the assessee's factory, had a very short shelf life, and was not shown to be marketed in that form. The Tribunal followed the earlier view that such ready-for-use mixed paint, when made for own use and not as a marketable product, did not attract duty at that stage.
Conclusion: The demand of duty on the prepared diluted aluminium paint was not sustainable and was set aside, in favour of the assessee.
Issue (ii): Whether the demand on aluminium powder floor sweepings was sustainable, and whether the penalty required interference.
Analysis: The assessee had accepted duty on the aluminium powder used in the process, and the record did not rebut the finding that the floor sweepings were used captively without disclosure to the Department. The Tribunal found no basis to disturb the conclusion that duty was payable on that item. On limitation, suppression of the quantity and non-intimation before departmental visit supported invocation of the extended period. The penalty was considered excessive in the facts.
Conclusion: The duty demand on aluminium powder was confirmed, and the penalty was reduced, in favour of the Revenue on duty and in favour of the assessee to the limited extent of penalty reduction.
Final Conclusion: The appeal succeeded only in part: the duty demand on the prepared diluted aluminium paint was deleted, while the duty on aluminium powder was upheld and the penalty was reduced.
Ratio Decidendi: A product prepared only for immediate captive use, which is not shown to be marketable in that form and has no practical shelf life, is not dutiable as a separate excisable product at that stage; however, duty remains payable on captively used material found to have been suppressed from the Department.
TaxTMI 
