TMI Blog2005 (1) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... Alkyl Benzene (LAB-in short) and Epichloro Hydrin and avail of Modvat credit of duty paid oil Lube oil, Hot oil activated Alumina, Hydrofluoric Acid and Pacal Catalyst; that these inputs are being used in the manufacture of final products and loose their utility and are cleared as sludge or scrap without payment of duty; that the Commissioner, under the impugned order, has confirmed the duty and imposed penalty on the Appellants in terms of Rule 57F(5) of the Central Excise Rules, 1944 which provides that any waste arising from the processing of inputs may be removed on payment of duty as if such waste is manufactured in the factory. He submitted that impugned items are not manufactured and are not goods under Section 2(f) of the Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imilarly the Commissioner (Appeals), on remand by Tribunal vide Final Order No. 365/2002 dated 13-12-2002 has held that no duty is payable on spent pacol catalyst as it is a non excisable product vide Order-in-Appeal No. 85/03 (M-I) dated 6-8-2003. 3. Finally, it has been submitted that the show cause notice was issued on 18-2-1999 for demanding duty for the period from 13-4-1999 to 27-11-1996 and as such demand is time barred as extended period is not invocable since the Department is aware of the entire manufacturing process and there is no need to suppress the facts; that it has been held by the Supreme Court in the case of Cadila Laboratories P. Ltd. v. CCE, Vadodara - 2003 (152) E.L.T. 262 (S.C.) that extended period is not invocable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed toward payment of duty of excise, - (i) on any of the final products in or, in relation to the manufacture of which such inputs are intended to be used in accordance with the declaration filed under sub-rule (1) of Rule 57G; or (ii) on the waste, if any, arising in the course of manufacture of the final products; or (iii) on the inputs themselves if such inputs have been permitted to be cleared under sub-rule (1). Further sub-rule (5) of Rule 57F reads as under : 5. Any waste, arising from the processing of inputs, in respect of which credit has been taken may - (a) be removed on payment of duty as if such waste is manufactured in the factory ; or (b) be removed without payment of duty, where it belongs to such class o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not manufactured and as such duty is not chargeable on such products. The benefit has to be availed of with the resultant liability. The decisions relied upon by them are not applicable as the facts are different. In Nirma Ltd. case, the Appellants had imported the catalyst under EPCG scheme at a concessional rate of duty. They were not availing the Modvat credit of the duty paid. Similarly, in Vikrant Tyres, provisions relating to Modvat credit were not in consideration. We also find no substance in Appellants contention that extended period of limitation is not applicable. It is specifically mentioned in the show cause notice that the impugned goods had been cleared without payment of duty and without indicating the production and clear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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