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2009 (8) TMI 915 - AT - Central ExciseSale of waste material - said waste material originating during the course of the packing of the soaps was being sold by the assessee in the market - Revenue entertained a view that such waste paper and waste plastic generated during the packing of soaps in the wrapper of the brand of the soap was a manufactured and hence an excisable item and should have been cleared on payment of duty - Held that: - such waste paper and plastic has emerged during the course of packing of the soap manufactured by the appellant. The appellants are not manufacturer of paper. Such waste material is being disposed off by them by being sold in the market and recovering some value. This fact by itself cannot be said to be relevant for the purpose of holding such waste and scrap to be marketable and hence excisable item. Extended period of limitation - Held that: - What is relevant is that there should be mala fide intention on the part of the assessee leading to some suppression or misstatement - In the present case, even if the fact of sale of soap waste generated in the factory was not being brought to the knowledge of the Revenue, the same cannot be on the basis of any mala fide - the demand is also hit by the bar of limitation. Appeal allowed - decided in favor of appellant.
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