Customs, Excise and Gold Tribunal - Mumbai
Indian Aluminium Company Ltd. vs Commissioner Of Central Excise, ... on 5 September, 2001
JUDGMENT
Gowri Shankar, Member (Technical)
1. Out of duty of Rs. 20.63 lakhs and penalty of Rs. 1.7 lakhs totally payable, applicant has deposited Rs. 15.20 lakhs.
2. Applicant uses coolant for rolling aluminium rods in its factory, the duty paid of which it takes as credit under Rule 57Q. After the coolant oil becomes contaminated and unusable, it clears it from it factory to a job worker. The job worker purifies the oil, rendering it fit for use again, sends it after payment of duty to the applicant. The applicant takes credit of the duty paid and uses the oil once again. This process is repeated many times. The department holds that credit could not be taken in these considerations.
3. The objection is that the procedure under Rule 57S is to followed. This clearance is prima facie not clearance under that rule but case of straight removal of products after their use and without being subjected to any manufacture by the applicant. In view of this, and considering the amount already paid, we waive deposit of the remaining duty and penalty and stay their recovery.