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1.4 It appears that the unit has not regulated their operations based on the norms finally fixed by the Norms Committee and thereby not fulfilled the condition laid down under the Notification No. 52/2003-Cus. Dated 31st March, 2003 and Notification No. 22/2003-CE dated 31st March, 2003 and therefore benefit of duty forgone under this Notification cannot be allowed for the 259.368 MT of duty free raw material used in excess. The Customs Duty has been works out to Rs. 74,82,640/- on 254.390 MT valued at Rs. 4,20,10,409/- and the Central Excise Duty has been worked out to Rs. 48,533/- of 4.978 MT valued at Rs.5,47,463/-. Accordingly, the Customs Duty as well as Central Excise duty has mentioned above, chargeable has been worked out. 1.5 During the adjudication of the above mentioned Show Cause Notices, the lower authority had considered the 'final wastage norms' for the entire period of demand and had recalculated the wastage norms and finally confirmed the demand on 49.123 MT of excess utilized raw materials then the final wastage norms fixed in respect of SCN no. 58/Commr./2008 dated 31 st July, 2008 and 3.742 MT of excess utilized raw materials then the norms fixed. In respect of SCN NO. 166/JC/2012 dated 23rd May, 2012 and SCN No. VIII/48-15/Cus- T/2012-13 dated3rd September, 2012. While calculating the excess consumption of raw materials, the lower authority had applied the ratios of input-output norms as prescribed in the 'Final Wastage Norms' fixed by the statutory 'Norms Committee', in respect of the raw materials consumed i.e. "Mixed Brass scrap with impurities". Whereas the ratio of input-output norms in respect of the raw materials i.e. Mixed Brass Scrap or Brass Scrap Honey was calculated in view of the provisions of clause 3 of the said notification, Page |6 E/11165, 11186/2014 & C/11886-11887/2014 wherein the generation of waste and scrap was allowed up to 2% of input quantity, in case where no Standard Input Output Norms (SION) were prescribed. The above two types of ratios were taken into consideration by the lower authority for arriving at the figure of excess consumption of raw materials as the "Final Wastage Norms' were fixed in respect of the Mixed Brass Scrap with impurities only and were not pertaining to the Normal Brass Scrap. The Mixed Brass Scrap or Brass Scrap Honey is considered to be normal brass scrap as per the Institute of Scrap Recycling Industries (ISRI) code. 1.6 The above mentioned Show Cause Notices dated 31st July, 2008, 19th February, 2010, 23rd May, 2012 and 3rd September, 2012 were jointly adjudicated by the lower authority and vide Order-in-Original demand of Customs Duty of Rs. 23,29,686/- and Rs.1,23,494/- was confirmed on excess utilization of raw materials than the norms fixed weighing49.123 MT and 3.742 MT under Section 28 read with Section 72 of the Customs Act, 1962 and also confirmed Central Excise Duty of Rs. 96,646/- on the excess utilization of raw materials indigenously procured under Section 11A of the Central Excise Act, 1944 along with interest and order was also passed regarding confiscation of 49.123 MT and 3.742 MT of raw materials under Section 111 (o) of the Act but as the goods were not available for confiscation, redemption fine of Rs. 9,00,000/- was imposed. Penalty was also imposed under Section 72 and Section 112 read with Section 114A of the Act and Section 11AC of the Central Excise Act, 1944.