TMI Blog2000 (2) TMI 869X X X X Extracts X X X X X X X X Extracts X X X X ..... he duty demand is in two parts, the first one relates to inspection charges borne by the buyer of the appellants goods. This is with regard to inspection carried out by a third party (RITES) on account of the buyer. This works out to ₹ 28,777. Both sides submitted that it is a covered issue, that testing charges incurred on account of third party inspection and testing (like in the case of D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, dated 12-5-1992, wherein it was stated that Net burning loss (by weight) of the 55 SI Spring Steel Rod of dia 20.64 mm during hot working and subsequent processing (like heating, quenching, tempering, Annoding, etc.) works out to approximately 1.5 to 2%. This certificate was not accepted by the adjudicating authority on the ground that the expert was not produced by the appellant for cross-e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the scale sticks to the surface of the steel. During the forging process, the oxidation of the steel continues, as the red hot steel is subjected to the action of the surrounding air. Heating thus leads to a certain issue of metal, or the formation of scale due to oxidation of the metal. This loss is called waste, and it is necessary to distinguish between waste due to heating (furnace wast ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture was over 2700 MTs. Since the loss of 49 MT is within the norm, we find the allegation of failure to account for the scrap or its removal without payment of duty, is not justified. Therefore, the demand of duty on this count also is liable to be set aside. We do so. As the demands of duty are not sustainable; the penalty is also required to be vacated. Therefore, the penalty of ₹ 15,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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