TMI Blog2019 (3) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... al of brass scrap by the appellants - penalty u/r 25 of CER, 2002 - Held that:- There is no illegality as they have cleared brass scrap under the cover of challans declaring it under N/N. 83/94-CE and 84/94-CE dated 11.04.1994 - The case that whether M/s. Senor Metal Pvt. Limited is eligible for SSI exemption under N/N. 8/2003-CE, the eligibility of said notification is concerned with M/s. Senor M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... All these appeals are directed against an order dated 08.04.2010 passed by the Commissioner whereby a penalty of ₹ 50,000/- was imposed on each of the appellant under Rule 25 of Central Excise Rules, 2002 in connection with demand of Central Excise duty amounting to ₹ 1,47,30,881/- confirmed against M/s. Senor Metal Pvt. Limited. 2. The brief facts of the case are that all the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the appellants. Shri Subhash Bordia, Ld. Chartered Accountant submits that there is no contravention or violation on the part of the appellant and they have cleared the scrap under SSI exemption Notification No. 83/94-CE and 84/94-CE. As regards the eligibility of notification to M/s. Senor Metal Pvt. Limited, if there is any lapse M/s. Senor Metal Pvt. Limited alone is responsible as they were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and perused the record. We find that the facts which are not in dispute are that all the appellants in the present case are supplier of scrap generated in the manufacture of final product. The said scrap is sent to M/s. Senor Metal Pvt. Limited for job work i.e. for conversion into brass wire. As regards the removal of brass scrap by the appellants, there is no illegality as they have cleared bras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suppliers of brass scrap cannot be implicated as abettor in evasion of duty by M/s. Senor Metal Pvt. Limited. Therefore, we do not see any reason that why appellants are liable to penalty under Rule 25. Accordingly, we set-aside the penalties imposed on all the appellants under Rule 25 and allow the appeals. (Operative part of the order pronounced in the open court) - - TaxTMI - TMITax - C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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