Customs, Excise and Gold Tribunal - Delhi
Indian Aluminium Cables Ltd. vs Commissioner Of Central Excise on 26 May, 1999
Equivalent citations: 1999(112)ELT1056(TRI-DEL)
ORDER V.K. Agrawal, Member (T)
1. The short point involved in this appeal filed by M/s. Indian Aluminium Cables Ltd., is whether penalty is imposable for non-maintenance of records of the intermediate product.
2. Shri Shekhar Vyas, ld. Advocate submitted that the appellants are bringing duty paid copper and aluminium rods which are being drawn into aluminium wire and taken for making insulators immediately. As the wires were captively consumed for making insulators they had not maintained the accounts. He further mentioned that as the wires were drawn in a continuous process of making final product i.e. insulated PVC cables they had not maintained any account. They are, however, maintaining proper record of their finished product. He further mentioned that in any case the benefit of Notification No. 217/86 will be available in respect of wires as these are captively used in the manufacture of insulated PVC cables. There is no allegation by the department of any clandestine removal and in view of these facts, no penalty is imposable for non-maintenance of statutory records in respect of wires which is a separate and distinct commodity.
3. We have considered the submissions of both the sides. There is no dispute about the fact that wires which are drawn by the appellants out of copper and aluminium rods are used captively in the manufacture of insulated PVC Cables. There is no allegation also of any clandestine removal of the goods or even removal for home consumption as the goods are captively consumed and in the absence of any wrong intention, we are of the view that no penalty is called for in the facts and circumstances of present case. We therefore, set aside the penalty of Rs. 2,000/- imposed on the appellants and allow the appeal with consequential relief, if any.