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2012 (10) TMI 930 - AT - Central ExciseDuty demand - Whether used fire brick and broken asbestos sheets cleared as waste and scrap from the factory are chargeable to duty or not? - Held that:- department seeks to charge duty on the fire brick’s waste under sub-heading 6901.90 and asbestos sheets waste under Heading 6804.20, on going through these headings, we find none of these sub-headings cover waste and scrap. In fact there is no heading in Chapter 69 to cover waste and scrap of ceramic materials and similarly, sub-heading 68.04 also does not cover waste and scrap of asbestos sheets. In view of this, we are of the view that fire brick scrap and asbestos sheets are not excisable. Moreover during the period of dispute there was no provision in the Cenvat Credit Rules, that when Cenvated capital goods are cleared as waste and scrap, an amount of equal to duty on sale price of such waste and scrap would be chargeable to duty. Such provision was intended by inserting Rule 3(5A) with effect from 16-5-2005 while the period of dispute in this case is prior to this date - Decided in favour of assessee.
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