2015 (10) TMI 38

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....brass sheets. They took Cenvat credit of the duty paid in respect of their inputs. In course of manufacture of Switch Gear Assembly, metal waste also arises, which was being cleared without payment of duty to job workers under Rule 4(5)(a) of the Cenvat Credit Rules, 2004 for conversion into ingots and return. The ingots received back from the job workers were being converted into strips for being used again in the manufacture of Switch Gear Assembly. The Department was of the view that the metal scrap (steel scrap and brass scrap) is not in the nature of semi-finished/semi-processed goods and as such, cannot be cleared without payment of duty under Rule 4(5)(a) to job workers for conversion into ingots and according to the department, the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the case, imposition of penalty on the Director and Authorised Signatory of M/s. Kunal Auto Industries was not called for, that in any case, since the penalties imposed on both the respondents were Rs. 5 lakhs or less, in terms of the guidelines issued by the Board under Section 35R of the Central Excise Act, 1944 regarding filing of appeal before the Tribunal, High Court or Supreme Court, the appeal should not have been filed by the Revenue, that in this regard, he also relies upon the instructions of the Board vide Circular No. 390/Misc./163/2010-JC, dated 17-8-2011 issued in exercise of the powers conferred under Section 35R of the Central Excise Act, 1944, according to which, the appeal to Tribunal would be filed only in those cases whe....