ADOR WELDING LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THESE appeals have been filed against the Order -in -Original No. 12/KKS/2005 -2006 dated 22.12.1999 passed by the Commissioner of Central Excise, Mumbai -III.

(2.) THE appellants manufacture welding electrodes, an excisable commodity. The Revenue proceeded against the appellants on the ground that the welding electrodes in fully finished condition and duly accounted for in the daily stock account which had been re -issued for the purpose of repacking, were actually subjected to reprocessing during which the said goods got destroyed. There was also an allegation that the appellants had cleared excess quantity of flux clandestinely without payment of duty. It was alleged that the appellants did not reverse the Modvat/Cenvat credit availed by them on the packing material and the inputs contained in the flux which became waste due to process of defluxing carried out by them on the welding electrodes mentioned in the annexure B to the show cause notice. The following demands were proposed in the show cause notice dated 02.02.2005:

(3.) ON adjudication, the Commissioner dropped the demand of amounts in serial No. 4, otherwise he confirmed all the other amounts proposed in the show cause notice. A penalty of Rs. 2.5 lakhs each had been imposed on the following officials of the company: