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2017 (12) TMI 617 - CESTAT CHENNAIWaste and scrap - excisability - it appeared that appellant had removed a quantity of 22,790 MT of waste and scrap which had arisen during the course of manufacture of finished goods to one Kanishk Steel Industries without payment of excise duty - Department took the view that such waste and scrap that have arisen during the course of manufacture are excisable and dutiable - SSI Exemption - Held that: - The department has only found fault with the assessee for having removed the said waste and scrap without following the procedures of Notification No.214/86-CE. Though appellants did not take permission or intimate that they are sending the goods to a job worker under N/N. 214/86-CE, it is not in dispute that waste and scrap that were sent out to Kanishk Steel Industries were done so only on delivery notes and the converted products had also been received back under invoices accounted for and utilized in further manufacture of final products. There is thus no allegation that the waste and scrap have been diverted or clandestinely sold. In any case, the broad procedural requirements of N/N. 214/86-CE, though not opted for, have been largely followed. The waste and scrap could at best be considered as captively consumed goods, the value of which is definitely not required to be excluded under the SSI exemption notification - the value of reusable scrap which is again used in the manufacture of final products will then not form part of the aggregate value of clearances for the purposes of SSI Notification. Appeal allowed - decided in favor of appellant.
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