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2022 (11) TMI 691 - AT - Central ExciseLevy of Excise Duty - all types of scraps sold by the appellant value of which is reflecting in the balance sheet - appellant submits that the Show Cause Notice has demanded the Excise Duty despite the appellant clarified that they have not paid duty on the scrap which is other than manufacturing scrap and cenvateable scrap - HELD THAT:- The appellant while giving the information, as asked by the department vide their letter dated 06.03.2013, in their letter dated 11.03.2013 categorically stated that they have paid the excise duty on manufacturing scrap and cenvatable scrap, they also stated that on the general scrap which is neither manufacturing scrap nor cenvatable scrap, they have not paid the duty. As per this submission of the appellant the duty is clearly not payable. Moreover, the Show Cause Notice was baldly issued without carrying out any investigation that whether the appellant have availed the Cenvat Credit in respect to the scrap which were cleared without payment of duty and also the manufacturing scrap. In absence of any such investigation the allegation made in the Show Cause Notice is bald and without any support of any evidence. It is clear that the appellant have cleared the scrap which is neither generated from the manufacturing nor generated from the cenvatable input or capital goods. Therefore, the same is clearly not liable to any duty. The identical issue was raised in the appellant’s own case only for the different period wherein taking a consistent view it was held that scrap, other than manufacturing and non cenvatable is not liable to duty - reliance can be placed in the case of ALEMBIC GLASS INDUSTRIES LTD. VERSUS COMMISSIONER OF C. EX., VADODARA-I [2006 (2) TMI 322 - CESTAT, MUMBAI] where it was held that Since the entities on which duties have been recovered are not emerging otherwise then skilful manipulation of raw materials, appellants by manufacture of medicaments, the levy of duly, as arrived at cannot be upheld. Thus, in the facts of the present case, it is clear that the demand raised in the SCN is not sustainable - appeal allowed - decided in favor of appellant.
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