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2016 (11) TMI 271 - AT - Central ExciseDemand - Whether the appellant is liable to pay Central Excise duty on the waste of band aid generated in the hands of the job worker - Rule 21 Central Excise Rules 2002 - Held that: - the finished products Band-Aid can be considered finished product only when they packed and certified as fit for dispatch to the market, on approval of the quality control section of the appellant - shredded Band-Aid may not become an excisable product as it is not a manufactured item and is a waste that gets generated during the course of manufacturing and packing of final product “Band-Aid” as the shredded Band-Aid has no market and the product is not marketable. Band-Aid falls under chapter 30, hence any scrap that arises during the course of manufacturing of final product needs to be classified which in the case in hand, should be under chapter 30; there is no tariff heading for classifying the scrap arising during the course of Manufacturing of Chapter 30, hence in the absence of any classification of the product, demand of the duty is unsustainable - Appeal allowed.
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