Full Judgment
1. At the outset it is stated by the applicants that they do not contest the confirmation of duty of Rs. 3,00,277.46 and what remains for decision by the bench is the justification for imposing penalty of Rs. 10,000/- The case relates to clearance of remnant parts of cut sheets of Mild Steel as waste and scrap and it is the view of the department that these MS sheets are not waste and scrap and are nothing but MS sheets themselves. In other words, the department takes the view that what has been cleared are the inputs themselves and therefore duty of the amount indicated above is payable on such clearance.
2. On hearing both sides and nothing that the authorities below have not given any reasons as to why penalty is called for in the present case and also nothing that there was considerable doubt in the matter as to whether the cut sheets could be considered as waste and scrap, which doubt was settled by the decision of the Tribunal in their own case reported in 1995 (75) ELT 382 (date of the order is 12.10.94, we agree with the appellant that no penalty is called for. We therefore set aside the same.