- (1.) Heard Learned Counsel for the parties. The appellant is aggrieved against the order dated 17.03.2010 passed in Excise Appeal No. 216 of 2006 by the Custom, Excise and Service Tax Appellate Tribunal, East Zonal Bench, Kolkata whereby the appeal of the assessee M/s. Tinplate Company of India Ltd: was allowed against the demand of Rs. 67,42,153/- and the order of penalty of equal amount was set aside; hence this appeal is against the deletion of the penalty of Rs. 67,42,153/-.
(2.) Brief facts of the case are that the respondent M/s. Tinplate Company India Ltd. was purchasing the HR sheets in coils from M/s. TISCO and was availing the cenvat credit in respect of the duty paid on said HR sheets. The HR Sheets in Coils were used for manufacturing of finished goods namely Tin Mill Black Plates, Full Hard Cold Rolled Coils and Electrolytic Tinplates. On sale of these articles, the requisite duty was paid and there is no dispute on this fact. However, during the process of manufacturing, according to assessee, certain inputs were found unfit for use in the manufacture of the finished goods. Such rejected inputs were cleared in the name of Pickled & Oiled HR Coils, to the consignment agent of M/s. TISCO and the credit was reversed at the prices which was lower than the price on which the credit was availed.
(3.) The contention of the assessee was that the reject was since sold at lower price, therefore, they were not liable to pay the duty at par with the cenvat benefit which they have availed. That contention was rejected on the ground that the rejects i.e., Pickled & Oiled HR Coils are not the new product as they are not subjected to manufacture. Therefore, the demand of Rs. 67,42153/- was found justified by the CESTAT.;