(1.) Both these appeals of the party and the Revenue arise from the order -in -appeal No. 154/02, dated 18 -12 -02. The issue before the Commissioner was as to whether the moisture content is required to be added in the assessable value of waste and scrap of lead and as to whether the amounts are required to be confirmed on account of the said addition. The party has taken a stand that the moisture content is not required to be added to the assessable value of the waste and scrap of lead, as the said moisture is not goods. However, the Commissioner disagreed with the appellant's contention and held that the moisture content is also required to be added in the assessable value. However, he reduced the penalty amount under Section 11AC to an extent of Rs. 50,000/ -. On the said order of reduction of penalty, the Revenue is aggrieved and hence these two appeals.
(2.) Ld. Counsel submits that the confirmation of demand on the ground that moisture content is to be added in the waste and scrap of lead is not in terms of the law and also in terms of the ratio laid down by the Tribunal in the case of Indian Aluminium Company Ltd. v. CCE, Belgaum, reported in 2003 (161) E.L.T. 184 (T) = 2003 (57) RLT 788. He points out that in the said case the revenue had proceeded on the basis that the percentage of vanadium pentoxide is required to be added in the assessable value of sludge. The Tribunal held that the assessment is required to be done only on vanadium sludge and the percentage of vanadium pentoxide content is not required to be determined and added in the assessable value of vanadium sludge. He further submits that the penalty is not required to be enhanced in view of the fact that the appellants have no intention to evade the duty and penalty is also not imposable on them, as they have made out a strong case on merits that the moisture content is not required to be added in the wastes and scrap of lead.
(3.) Ld. DR Shri A. Jayachandran, reiterates the findings by the Commissioner and seeks for upholding the order and for enhancing the penalty amount.