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2016 (3) TMI 261 - AT - Central ExciseDemand of duty for clearance of waste and scrap - case of the assesse that they had cleared the waste and scrap under the provisions of Notification 214/86-CE and received back the granules which are used for manufacturing process - Held that:- Both the lower authorities have given concurrent findings as to the demand being unsustainable. Both the lower authorities have recorded a factual findings that the plastic waste and scrap generated during the manufacture is sent to manufacturer for converting the same in to granules and receiving the same back for further use in the manufacture of finished goods. Both the lower authorities have come to this conclusion after considering all the records of the case before them. Revenue's claim that benefit of Notification 214/86-CE cannot be made applicable to ‘waste' is incorrect as the said Notification applies for the goods manufactured by a job-worker on job-work basis and to be used in or in relation to the manufacture of final products on which duty of excise is leviable whether in whole or in part. In the case in hand, it is undisputed that the plastic waste and scrap which gets generated during the manufacture of final products are sent to job-worker and received back as granules which are further consumed in the manufacture of final products. On the face of such factual matrix, in our view, both the lower authorities were correct in holding that no liability arise on the respondent-assessee. Further, the benefit of Notification 214/86 should be applicable to the inputs on which cenvat credit is availed but at the same time the assessee kept the department informed by following the procedure to indicate that that they are clearing the waste and scrap to the job-worker and received the same back as granules. This transparency in the appellant's dispatch of waste and scrap and receiving the granules back cannot be questioned only on the ground that the Notification 214/86-CE is not applicable to waste and scrap. Factually also, it is not in dispute that the waste and scrap which is sent to job-worker is received back as granules, nothing survives in the appeal. - Decided in favour of assessee
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