AUDCO INDIA LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS appeal is taken up for de novo consequent upon the order of Hon'ble High Court of Madras dt. 11.9.2009 in C.M.A. No. 1370 of 2007.

(2.) THE brief facts of the case are that appellants are manufacturers of industrial valves falling under Chapter 84. On investigation by the department, it came to light that they have not paid appropriate excise duty on the scrap generated at the job worker premises from the goods sent and processed under rule 57F (4) of Central Excise Rules, 1944 and they also removed capital goods to their job workers premises without reversal of credit. Hence, show cause notice dt. 19.4.99 was issued to the appellants demanding duty with interest and penalty thereon. The adjudicating authority in the order dt. 4.2.2000 confirmed the duty demand of Rs. 15,53,996/ - under proviso to Section 11A(1) of Central Excise Act and appropriated the entire duty amount already paid by them towards the demand. He also confirmed the reversal of credit of Rs. 1,71,091/ - under Rule 57U (2) and vacated the protest of the appellant when they paid the said amount. He imposed penalty of Rs. 8,52,254/ - equivalent to the duty payable after 28.9.1996 under Section 11AC and also demanded interest under Section 11AB in respect of duty of Rs. 8,52,254/ -. The adjudicating authority also imposed penalty of Rs. 1,63,815/ - equivalent to the ineligible credit taken after 28.9.96 under Rule 57U(6) and also demanded interest under Rule 57U(8). He also imposed penalty of Rs. 1 lakh under Rule 173Q of Central Excise Rules.

(3.) AGGRIEVED by the Tribunal's order, Revenue filed C.M.A. before the Hon'ble High Court of Madras and the Hon'ble Court vide Order dt. 11.9.2009 in C.M.A. No. 1370/2007 set aside the Tribunal's order dt. 15.11.2006 and remitted back the matter to the Tribunal.