Custom, Excise & Service Tax Tribunal
Unimech Industries Private Ltd vs Commissioner Of Central Excise, ... on 18 December, 2017
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH CHENNAI Appeal No.E/768/2010 [Arising out of Order-in-Appeal No.102/2010-C.Ex. dt. 13.09.2010 passed by the Commissioner of Customs, Central Excise & Service Tax (Appeals), Coimbatore] Unimech Industries Private Ltd. Appellant Versus Commissioner of Central Excise, Coimbatore Respondent
Appearance:
Shri N. Viswanathan, Advocate For the Appellant Shri R. Subramaniyan, AC (AR) For the Respondent CORAM :
Honble Ms. Sulekha Beevi C.S. Member (Judicial) Honble Shri Madhu Mohan Damodhar, Member (Technical) Date of hearing / decision : 18.12.2017 FINAL ORDER No. 43165 / 2017 Per Bench The facts of the case are that the appellants are engaged in manufacture of tractor parts falling under CETH 8708 9900 on job work basis for TAFE Ltd. During verification of records, it appeared to the department that waste and scrap arising during such manufacture of tractor parts are not returned to TAFE and are retained by the assessee and are sold by them on payment of duty. Proceedings initiated against the appellant culminated in adjudication order by original authority dt. 2.2.2010 inter alia demand amount central excise duty of Rs.30,54,136/- with interest thereon and are imposing equal penalty under Section 11AC of the Act. Appeal filed by appellant was rejected by the Commissioner (Appeals) vide impugned order dt. 13.9.2010. Hence this appeal.
2. Today when the matter came up for hearing, on behalf of the appellant, Ld. Advocate Shri N. Viswanathan submits that value of the scrap was included in the assessable value of the their final products by including the cost of cast articles supplied to them and no deduction is made for the loss of metal during the process of machining which is permitted under CAS-4. He also submits that the matter is no longer res integra as the issue stands settled in a number of cases. He takes us to the decision of Tribunal in the case of P.R. Rolling Mills Pvt. Ltd. Vs CCE Tirupathi - 2010 (249) ELT 232 (Tri.-Bang.) where it has been held that scrap arising during conversion of blooms/billets into bars / section cleared on duty payment, value of scrap is not includible in the assessable value of the bars / section cleared by the job worker. He further points out that the appeal against this decision was dismissed by the Hon'ble Supreme Court both on the grounds of delay as well as on merit as reported in 2010 (260) ELT A84 (SC). He submits that decision of P.R. Rolling Mills was also relied upon in a subsequent decision of the Tribunal in the case of Campco Chocalate Factory Vs CCE Mangalore - 2010 (258) ELT 273 (Tri.-Bang.)
3. Ld. A.R supports the impugned order.
4. On going through the facts, we find that the ld. advocate is correct in his assertion. Hence following the ratio of the case laws cited supra, we hold that the impugned order cannot sustain, for which reason it is set aside. Appeal is therefore allowed with consequential relief, if any, as per law.
(dictated and pronounced in court)
(Madhu Mohan Damodhar) (Sulekha Beevi C.S)
Member (Technical) Member (Judicial)
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Appeal No. E/768/2010