2007 (5) TMI 63

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..... eing disposed off by a common order. M/s. Sant Gyaneshwar Steels Pvt. Ltd. and the appellants herein are manufactures of MS ingots. They used duty paid scrap of MS Section, turning, boarding and off-cuts. Such scrap is purchased by them from 1st and 2nd stage scrap dealers registered with Central Excise. These dealers obtain their material from manufacturers e.g. Telco, Bajaj Auto Ltd., etc. which .....

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..... enalties as per this notice were confirmed vide order dated 14-12-2001. The Commissioner (Appeals) upheld the orders and rejected the appeal filed. Hence the present appeals by the assessee and the two dealers. 2. After hearing both sides and considering the issues it is found that it is well settled that the registered dealers under the Central Excise Act can obtain duty paid goods from the orig .....

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..... e no objection raised by excise authorities on that account. The left over scrap would be MS scrap off-cuts and that is not under contest. These left over goods can be sold to any assessee at the mutually agreed rate. However, the excise duty component cannot be reduced pro rata to the value per Kgs. Reduced in such sales or increased pro rata if the value is raised. There fore, the invoices issue .....

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