TMI Blog2017 (1) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment of Apex Court in the case of CCE Vs. Indian Aluminium Co. Ltd. [2006 (9) TMI 6 - SUPREME COURT OF INDIA] where it has been unequivocally held that dross and skimming are not excisable to duty - In the event, condition No.3 of Notification No.52/03-cus referred to above will definitely impact the appellant and they will have to necessarily pay Customs duty equal to amount that leviable on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants are engaged in Aluminium alloy wheels falling under CETA 8708.00, operating as 100% EOU. In the course of manufacturing of these items, dross floats up in the holding furnace which is removed before the castings are made. Dross is cleared to DTA on payment of excise duty at 16%. Department took the view that since appellant had imported Aluminium ingots without payment of Customs duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, learned counsel Shri B. Srivinivasa submitted that when the appellant has cleared dross and slag on payment of duty, there can be no reason to demand duty on Aluminium ingots imported by them with duty exemption. 3. On the other hand learned AR Shri P.S. Reddy reiterates the correctness of the impugned order. 4. Heard both sides and have gone through the facts. The excisability of dros ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aluminium ingots obtained under that Notification. Hence applicable customs duty will have to be paid on the inputs contained in the dross/slag. 5. In the event, we do not find any reason to interfere with the demand of ₹ 84,09,465/- of Customs duty foregone, in the impugned order. However, being an interpretational issue and also taking note of the fact that the appellant was paying d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act that there was sufficient confusion in the matter so as to constitute a Larger Bench of the Tribunal in the case cited above, we are of the considered view that the imposition of penalty is unwarranted. 6. We therefore set aside the penalty. The impugned order is modified to the extent of setting aside the penalty only. Appeal is partly allowed with consequential reliefs, if any. (Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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