TMI Blog2018 (12) TMI 1784X X X X Extracts X X X X X X X X Extracts X X X X ..... ant. - Excise Appeal No. 50875 of 2018, 50845 of 2018, 50846 of 2018 - Final Order Nos. 53635 – 53637/2018 - Dated:- 19-12-2018 - HON BLE MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) AND HON BLE MR. BIJAY KUMAR, MEMBER (TECHNICAL) Shri S. K. Pahwa Shri Kuldeep Singh, Advocates for the appellant Shri V. B. Jain, Authorised Representative for the respondent ORDER ANIL CHOUDHARY: M/s Kopertek Metals Pvt. Limited (hereinafter referred to as the appellant) are engaged in the manufacture of copper ingots, copper wire rod, copper wire etc, which they remove on payment of Central Excise duty. 2. Vide the impugned order-in-original, the Additional Director General, DGGST Intelligence, New Delhi have ordered confiscation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t he was running FMMPL, UAPL, MAPL, PALPL and BMPL; that these entities were registered with the Central Excise department as dealers and were engaged in passing on Cenvat credit to their customers; that they sold the material in the open market in cash without bills and passed on cenvat credit to the manufacturers on the strength of cenvatable invoices without supplying the corresponding material. Thus it appeared that the manufacturers including KMPL had availed inadmissible cenvat credit on the invoices of PAIPL, FMMPL, BMPL and UAPL. 5. The searches in the premises of Mr. Amit Gupta resulted in recovery of various incriminating documents showing sale of goods in cash in market, besides recovery of cash aggregating to ₹ 1,05,00, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e further filtered and used for manufacture of copper rods. The testing of copper slag revealed that there was 56.8% of copper in the slag, which was therefore valued at ₹ 7,24,20,000/-. The said copper slag was not accounted in the daily stock register of KMPL as required under Rule 10 of the Central Excise Rules, 2002; and was therefore seized. Detention of 40 MT of copper scrap valued at ₹ 1,70,00,000/- at the godown was also converted into seizure. 8. Mr. Ravinder Singh, allegedly Supervisor/ In-charge at undeclared godown of KMPL/ MCPL, situated at Delhi, in his statement dated 06.12.2012, inter alia stated that he was working with Malhotras who were Directors of KMPL and MCPL; that Mr. Jagdish Malhotra, Director o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , indicating the particulars regarding description of goods produced or manufactured, opening balance, quantity produced or manufactured, opening balance, quantity produced or manufactured, inventory of goods, quantity removed, assessable value, the amount of duty payable and particulars regarding amount of duty actually paid. 12. Rule 12 of the Central Excise Rules, 2002 stipulates that every assessee shall submit a monthly return in the form specified in notification by the Board, of production and removal of goods and other relevant particulars. 13. Thus it appeared to Revenue that KMPL have contravened the provision of Rule 10 and Rule 12 of the Central Excise Rules, 2002; and therefore the seized goods are liable to confiscation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fiscation of copper slag is based on Central Excise Rules which provides that the goods produced was manufactured, are to be entered in daily stock account. As copper slag (remnant) was generated during the process of manufacture of copper goods, no separate accounting was required in terms of Rule 10. Further, urged that appellant manufacture copper rod, ingots and copper wire for which they charge copper scrap/ ingots in furnace for melting, after filtration of impurities, they take out copper slag, that this copper slag is further processed by further filtration and again melted and filtered and thus copper rods are manufactured by way of continuous cast process in copper foil form. Further, the slag generated during the process of manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CE, New Delhi- 2000 (117) ELT 350 (Tri.) and Steel Authority of India Ltd. vs. CCE, Raipur 2006 (197) ELT 113 (Tri. Del.), copper slag is a manufactured goods arising in the process of manufacture and therefore, qualifies to be called as manufactured goods. Consequently, it is required to be entered in the daily stock account in accordance of Rule 10 of Central Excise Rules, 2002. 19. Having considered the rival contentions, we find that Revenue has not established that copper slag is marketable and further they have not identified the tariff entry or sub heading under which copper slag is dutiable. Thus, this finding of the adjudicating authority are vague and misconceived. Accordingly, we hold that appellant was not required to ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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