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2011 (7) TMI 351 - AT - Central ExciseDemand of amounts u/r 57AD CE Rules, 1944 / Rule 6(3)(b) of CCR and imposition of penalties as they cleared 'waste pulp' without payment of duty and without maintaining separate accounts for inputs and invoking period of extended for it - demand of duty on waste paper has been made on the ground that the said goods are excisable goods. Regarding demand of duty u/r 57AD. Held that:- The appellants are manufacturing dutiable products.As manufacturer of dutiable paper and exempted pulp, in the absence of maintaining the separate accounts for inputs attributable to such exempted products, they were rightly held to be liable to pay amounts u/r 57AD CE Rules & Rule 6(3)(b) CC Rules. appellants have indicated clearance of waste pulp in the returns. Therefore, invoking the extended period of limitation for raising demands and imposition of penalties are not justified. decided against Assessee but demand only for normal period and no penalty. regarding demand of duty on 'waste paper sweepings. Held that:- goods have been sold as waste paper, obviously, at a lower price compared to that of good quality of paper. It has not been disputed that the buyers have purchased them as paper and for using the same as paper.That being the case, the demand of duty on waste paper under Chapter Heading 470290 cannot be faulted. There was a SCN issued in Nov. 2001 itself seeking to demand duty on waste paper. It cannot be held that appellants have suppressed any relevant information regarding emergence of waste paper and that the department was not in knowledge of relevant facts. Therefore, invocation of extended period for demand of duty and imposition of penalties are not justified. decided against Assessee but duty demanded only normal period without penalty.
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