LUCAS INDIAN SERVICE LTD. Vs. CCE

JUDGEMENT

(1.) This appeal arises against Order -in -Appeal No. 240/97 dated 14.10.1997 by which the Commissioner of Central Excise (Appeals), Chennai has confirmed the order of the lower authority who has demanded a duty of Rs. 700 and Rs. 1,590 as detailed in the show -cause notice O.C. No. 1521/95 dated 1.12.95 and Rs. 1,410 and Rs. 1,764 as detailed in the Annexure to the show -cause notice O.C. No. 751/96 dated 4.4.96 under Rule 9(1) of the Central Excise Rules, 1944 read with Section 11A of the Central Excise Salt Act, 1944. However Ld. Commissioner (Appeals) has set aside the penalty of Rs. 100 under Rule 173Q of the Central Excise Rules, 1944 imposed on the appellants.

(2.) The brief facts of the case are that the appellants [M/s. Lucas Indian Service Ltd.] are manufacturer of ignition coils and solenoid switches falling under chapter 8511.00 and 8536.90 of Central Excise Tariff, 1985. They have also availed Modvat credit. On scrutiny of the RT12 returns by the assessee it was noticed that they have cleared waste Transformer oil and waste Trichloroethylene without payment of duty during May 1995 to August 1995 and May 96 to September 96. The appellant's plea is that they have paid duty on transformer oil and Trichloroethylene and after processing they have become waste. While the appellants state that it is not marketable, the department took the view that it is marketable. The lower authority has classified the goods as 'others' under 2710.90 and has charged duty as waste oil and duty has been demanded accordingly.

(3.) No representation for the appellants despite notice. We have heard Ld. DR Shri C. Mani for the respondents.