1983 (6) TMI 192

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....the period 9-4-1979 to 4-6-1981 and levying penalty of Rs. 5,000/- on the appellants under Rule 173Q of the Central Excise Rules, 1944 for being involved in the aforesaid offence. Consultant, Shri N.D. Khosla, who appeared for the appellants has explained how the skull scrap, runners and risers etc. arise out of the manufacture of steel ingots in the factory of the appellants. He has stated that the scrap thus produced is utilised again and again in the manufacture of steel ingots and this practice had been going on for the past several years. The main contention advanced by the appellants is that since the scrap is produced from scrap only and since both the types of scrap are classifiable under the same item namely, 26 of the Central Exci....

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....d on the part of the Collector and hence his order is therefore liable to be set aside. He has also explained that the quantity of scrap arrived at was obtained by the Central Excise Officers from the Form IV Register of the appellants and this would also show that there was no suppression of facts by them. He has further pleaded that Form IV was a statutory record and this was required to be maintained as per the Central Excise Rules. As regards the Collectors' order of levy of penalty, he has pointed out that there was no contravention of Rule 9 or any other rules; therefore, Rule 173Q was not attracted. He has also relied on judicial pronouncements in this behalf to say that the levy of penalty was not justified. He has accordingly reque....