1999 (12) TMI 447

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....pellant. Shri K.L. Ramteke, JDR, for the Respondents. [Order per : Gowri Shankar, Member (T)]. - The application is for waiver of deposit of duty of Rs. 53.41 lacs and penalty of Rs. 10.00 lacs. 2. Duty has been demanded on the ground that the applicant converted aluminium scrap received by it for the manufacture of ferro alloys into powder classifiable under Heading 76.03 of the ....

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....e powder, granules, flakes. The Commissioner has not taken into account the fact that Modvat credit under Rule 57H was allowed for the quantity of scrap in stock as on 24-7-1991 (when ferro alloys became excisable). Hence this quantity would not have been used in the manufacture of powder, so also the quantity of scrap which was sold by the applicant in the form in which it was received and of whi....

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....al hardship. 5. We are unable to accept the claim of financial hardship. The applicant is a partnership firm and the liability to duty and penalty would be jointly and severally on each of the partners. This claim would have to be established for each of the partners. This has not been attempted. It is also prima facie not possible for us to accept that whereas one type of scrap was requir....

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.... 1998 much later than the period under consideration. 6. At the same time, however, it had not been prima facie shown that, if the applicant did, for technological purposes, reduce the size of the scrap received by it, the resultant product justifies classification under Heading 76.03. This heading is for aluminium powders and flakes. It has not been shown that the powder comply to the req....