2010 (3) TMI 459

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.... has been imposed under Section 11AC of the Central Excise Act. The appellant is a conversion agent of M/s. Tata Iron & Steel Company Ltd. (M/s. TISCO). The appellants receive HR Sheets in Coils from M/s. TISCO and were availing credit in respect of duty paid on HR Sheets. The HR sheets in coils are further used in the manufacture of finished goods, namely, Tin Mill Black Plates, Full Hard Cold Rolled Coils and Electrolytic Tinplates which are subsequently cleared by them on appropriate duty. During the manufacturing of the finished goods, the certain inputs were found unfit for use in the manufacture of finished goods. Such inputs were cleared as rejects Pickled & Oiled HR Coils to the consignment agent of M/s. TISCO and the credit was rev....

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....of duty. The contention is that as the appellants were clearing the rejects under the appropriate duty paying documents and the same are submitted regularly with monthly statutory returns to the Revenue, therefore, the allegation of suppression with intent to evade payment of duty is not sustainable. 6. The contention of the Revenue is that the appellants are availing credit in respect of duty paid on inputs and the same are used for the manufacture of finished goods. Certain processes are undertaken in respect of inputs which do not amount to manufacture and the appellants are clearing these HR Sheets which were not found up to the mark under the same heading No. 7208.39 of the Central Excise Tariff which is the same under which the HR ....