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2015 (10) TMI 1698 - AT - Central ExciseDemand of excise duty - goods cleared under Rule 173H and Rule 57F (4) - Instead of repairing or reprocessing, appellants have cleared the excisable goods by using the inputs which were available in from their stock - held that:- Appellants have set up integrated aluminium plant where they have the facility of manufacturing of aluminium products from primary ore stage to the finished goods viz. aluminium Ingots, Rods, Sheets. They also carry out re-processing or remelting of the scrap and this is only a miniscule activity and done only when their finished goods are returned by the suppliers. I also find that the finished goods manufactured out of returned goods were subsequently cleared on payment of duty as normal clearance. D3 declaration intimation was duly filed upon the officers visited the unit on 10.2.2000 as recorded in para-2 of the SCN. It is found that from the production records that appellants have cleared the goods under rule 173H from the fresh stock. SCN should have been issued within 6 months whereas the department issued SCN on 10.2.2004. Hence there is no suppression of facts with intention to evade payment of duty. Therefore, demand raised on the goods cleared under Rule173H is hit by limitation and liable to be set aside and equal penalty imposed on the appellant is also liable to be set aside. - appellants are liable for under penalty under Rule 173Q as they have violated the procedure. Therefore, appellants are liable for penalty. In view of the foregoing discussion, demand and Section 11AC penalty is set aside - Decided partly in favour of assessee.
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