2006 (8) TMI 416

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....t. Shri B.L. Meena, SDR, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - The lower authorities have demanded Rs. 1,03,978/- from the appellants in respect of aluminium circles cleared from their factory during 2004-05. The original authority imposed equal amount of penalty on the party, which was reduced to Rs. 10,000/- by the first appellate authority. A separate penalty of ....

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....etal Works had chosen to discharge duty liability at the rate of Rs. 2,500/- per M.T. in terms of Central Excise Notification No. 6/2002. During 2004-05, the cold-rolling machine of M/s. Ganesh Industries was not in operation and therefore they allowed M/s. Devi Metal Works to do the cold-rolling part of the manufacturing activity on job-work basis. The job-worked goods received by M/s. Ganesh Ind....

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....cause notice did not take into account the payment made by M/s. Ganesh Industries on the same goods, while raising demand of duty on M/s. Devi Metal Works. This approach of the Department made its way into the order-in-original and order-in-appeal as well. 3. After considering the submissions, we find that, under the relevant Notification (34/2001) relating to the compounded levy scheme, M....

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....e and there is no room for them to claim any abatement. As against M/s. Devi Metal Works, prima facie, no duty can be levied on the job-worked goods inasmuch as they were not liable to pay duty as job-worker and duty was actually paid by M/s. Ganesh Industries. 4. For the reasons already noted, there will be waiver of pre-deposit and stay of recovery in respect of the duty and penalty amou....