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2015 (2) TMI 226 - AT - Central ExciseDemand of duty in respect of removal of used and old conveyor belts - whether the used and old conveyor belts removed by the appellant as waste and scrap, are required to discharge its duty liability in terms of the provisions of Rule 57S(2)(C)-Where capital goods are sold as waste and scrap - Held that:- old and used rubber goods would fall under Chapter 40 only when they are converted into waste and scrap before their removal. Merely on account of repeated use, old and used conveyor belts would not be shifted to Chapter 40, from their maiden classification under Chapter 84. The fact that no processing was undertaken on the conveyor belts at the time of their clearances, is clear from the allegations made in the show-cause notice. - The Notice treat broken and worn out conveyor belts as waste and scrap which are sold by them in the market without payment of Central Excise duty. As such, it is clear from the above that the conveyor belts are cleared as used and worn out conveyor belts without converting the same into waste and scrap. A specific contention stands taken by the learned advocate that the appellant might treat the said old and used conveyor belts as waste for them but the same may be used by the buyers, after some reprocessing etc. as conveyor belts only, in which case it cannot be held that it is waste and scrap falling under Chapter 40. - provisions of Rule 57S(2)(C) of the CENVAT Credit Rules are not attracted in the present case inasmuch as the goods cleared by the appellant are not leviable to duty of excise. - Decided in favour of assessee.
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