ORDER
Gowri Shankar, Member (Technical)
1. The application is for waiver of deposit of duty of Rs. 570744/-, and a penalty of Rs. 1.50 lakhs.
2. The applicant was engaged in the manufacture of sodium petroleum sulphonate. It is stated by its counsel that it obtains waste filter cake supplied free of charge by Lubrizol Ltd. from which it extracted this product, and supplied it to Lubrizol at Rs. 33/- per kilogram. Subsequently, the applicant undertook manufacture of the same product of a higher grade for which it used heavy alkylate, for which it declared the value of Rs 50/- per kilogram. Notice was issued to it proposing to add to the value of Rs. 33/- per kilogram Rs. 17/- per kilogram towards the cost of the raw material supplied free by Lubrizol. The Assistant Commissioner (whose order has Been confirmed by the Commissioner (Appeals)) upheld the addition of the value and imposed penalty. Hence this appeal.
3. The contention of the counsel for the applicant is that the department has no evidence to show that sulphonate of the two kinds in manufacture is in the same quality. That however is not the basis of the notice. If Lubrizol gave the applicant waste filter cake free because it was worthless how the applicant could get material out of it that it sold to Lubrizol @ Rs 33/- per kilogram is not answered. It appears to us that the ratio of the Supreme Court’s judgment in Burn Standard Co Ltd vs UOI 1992 (60) ELT 671 would apply.
4. On this consideration, we direct deposit of Rs. 2.50 lakhs towards duty and penalty within a month from the receipt of this order. On such deposit, we waive deposit of the remaining duty and penalty and stay their recovery.
5. Compliance on 27.9.2001.