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2016 (1) TMI 1241 - CESTAT NEW DELHI100% EOU - N/N. 52/2003-Cus. dated 31.3.2003 - The appellants have made use of aluminium ingots both imported as well as procured indigenously and sent them to job workers for converting the same into aluminium castings which were used in the further manufacture of automobile parts. During the course of production of automobile parts, aluminium scrap is generated - In respect of scrap generated beyond the norms of 6% in the impugned order customs as well as excise duty have been demanded in respect of quantum of ingots proportional to the excess quantum of scrap generated. Whether such excess exemption is to be ignored or whether the duty is to be demanded on the portion of aluminium ingots lost in such excess wastage? Held that: - the quantum of ingots which has been consumed towards wastage beyond the norm of 6% is to be considered as utilised beyond the scope of the permission for procurement of duty free inputs. However, since absolutely no evidence of diversion or suppression is on record, I find it difficult to sustain the charge of suppression and invoking the extended time limit for demand of such duty - All the demands are to be paid along with interest. In the absence of any suppression, there is no justification for imposition of penalty and the same are set aside. Appeal disposed off - decided partly in favor of appellant.
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