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2012 (9) TMI 858 - AT - Central ExcisePenalty - Whether in a process involving heating/melting, there can be a process-loss or not, especially when the raw material is a scrap - Held that:- I am not aware of any technology available at present which eliminates process-loss. In any manufacturing activity, process-loss occur and so long as the losses are within reasonable limits they have to be permitted. In the case before me, the loss is only to the extent of 5.4% which is very reasonable and, therefore, it cannot be held that there was any unreasonable loss. Further, the department has not adduced any evidence whatsoever to show that the appellant diverted a part of the material for some other purpose. In the absence of such evidence, the action on the part of the department in imposing a penalty, that too on alleged ground of suppression, is bad in law - Decided in favour of assessee.
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