2001 (4) TMI 393

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.... Dr. D.K. Verma, SDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - The appeal is directed against demand of duty of Rs. 4,98,011/-, imposition of penalty of Rs. 5,000/-and demand of interest in respect of the duty. The duty demand is in respect of about 111 M.T. of waste ABS Polymer. 2. The appellants are manufacturers of ABS Polymers. A portion of the polymers manu....

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.... that waste ABS Polymer is sold in the market and the same is used for reclaiming polyester granules, as done by the appellants themselves. 3. It is the common finding in both the impugned orders in original and the order-in-appeal that waste ABS polymer is used for re-processing into granules and that waste ABS Polymers is sold in the market. The appellants have not adduced any material t....

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....the input for the manufacture of the final product. Re-processing involves costs. Therefore, the appellants are right in their contention that the value of ABS Polymer waste should have been fixed after allowing adequate deduction (towards cost of processing) from the value of the final product. In this connection they have pointed out that the Asstt. Commissioner had allowed a deduction of Rs. 5 ....

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....rom the Department. With regard to his submission, we find that this is a case of short levy and show cause notice had been issued within the usual period of six months. No allegation of suppression of facts with intent to evade payment of duty has been made. There is nothing clandestine about the appellants' activities. In these circumstances, we do not consider the penalty justified. 6. ....