1996 (6) TMI 188

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..... is an appeal against the order of Commissioner (Appeals) No. 6/JPR/91, dated 22-1-1996. 2. Ld. Counsel stated that the appellants are engaged in the manufacture of Nylon filament Yarn falling under Chapter Heading 54.02. 3. For its manufacture of caprolactum is a principal raw material. 4. During the process of manufacture the caprolactum is first converted into chips known as po .....

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..... f waste ribbon which has been seized was lying on the polymerisation area on the second and third floor. These waste ribbons are cut into smaller pieces for recovery of caprolactum. Similarly the lump waste was lying in a store room (waste godown) for recovery as aforesaid. 7. The waste both in the form of lumps and ribbon waste is thus normally used for captive consumption only and only occ .....

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..... entered in RG 1 before captive consumption the violation at best would be technical and lenient view was called for. 10. It was therefore their contention that since it was a work-in-process material and RG 1 stage had not reached, therefore in the normal course the entry was not required to be made at that stage, hence, no fine and penalty should have been imposed. It is their alternative p .....

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..... ) was available to the appellant is also not in dispute. It was however department's contention that they ought to have entered the entire quantity in question in RG 1 before further use whether for captive consumption or otherwise. 13. In the circumstances, since they had admittedly not entered the quantity in RG 1 they were liable to fine and penalty. He leaves it to the bench to consider .....

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..... correct in pointing out that if such waste material was subsequently required for recovery of caprolactum in that case the RG entries should have been made before such use. At the same time I note that the item was admittedly a wholly exempted item as accepted by both the sides. Therefore, the violation cannot be considered as serious one and a fine of Rs. 50,000/- also appears to be on the highe .....

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