Custom, Excise & Service Tax Tribunal
M/S. Saravana Global Energy Ltd vs Cce, Pondicherry on 26 April, 2011
IN THE CUSTOMS, EXCISE & SERVICE TAX
APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No. E/520/2010
(Arising out of Order-in-Appeal No. 119/2010 (P) dated 25.6.2010 passed by the Commissioner of Central Excise (Appeals), Chennai)
For approval and signature:
Honble Ms. Jyoti Balasundaram, Vice-President
1. Whether Press Reporters may be allowed to see the Order for Publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2. Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3. Whether the Member wishes to see the fair copy of the Order?
4. Whether Order is to be circulated to the Departmental authorities?
M/s. Saravana Global Energy Ltd. Appellants
Vs.
CCE, Pondicherry Respondent
Appearance Ms. Uma Maheshwari, Advocate for the Appellants Shri C. Rangaraju, SDR for the Respondent CORAM Honble Ms. Jyoti Balasundaram, Vice-President Date of Hearing: 26.04.2011 Date of Decision: 26.04.2011 Final Order No. ____________ In this case a demand of duty of Rs.39,986/- and education cess of Rs. 800/- has been confirmed together with interest in terms of Section 11A(2) read with Section 11AB on old scrap insulators cleared by the assessees to M/s. Mechtech Electricals on the ground that the goods cleared were akin to insulators manufactured and cleared on payment of duty by the assessees. In addition, a penalty of Rs.40,786/- under Section 11AC of the Central Excise Act and Rs.10,000/- in terms of Central Excise Rules has been imposed on the assessees.
2. I have heard both sides. The invoice describes the goods as old scrap insulators. As rightly pointed out by the learned SDR the goods have been cleared on piece basis with a specific rate per piece. Generally scrap is sold on weight basis and not on piece basis. Therefore, the Revenue has made out a case that what was cleared by the assessees was nothing but old disc insulator liable to duty. The reliance placed by the assessees on the certificate given by their purchasers M/s. Mechtech Electricals is misplaced as the certificate has been furnished subsequent to the impugned order and the assessees could have requested the purchaser to issue certificate as required by them. The plea of bona fide belief that what they were clearing was scrap was not acceptable in view of the finding that the nature of the goods namely that they are not scrap.
3. In the result I uphold the impugned order and reject the appeal.
(Dictated and pronounced in open court) (JYOTI BALASUNDARAM) Vice-President Rex ??
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