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2017 (7) TMI 885 - AT - Central ExciseWaste/scrap - excisability - Whether the appellants M/s IOC is liable to pay duty on the scrap of capital goods and on the Spent Catalyst? - Held that: - the issue of whether waste and scrap, which is generated in the course of manufacture due to scrapping of worn out parts of capital goods would attract any duty or require reversal of Cenvat Credit before 16.05.2005, when Sub Rule 5A to Rule 3 of Cenvat Credit Rules, 2004 was introduced, was settled by the judgment of Hon’ble Madras High Court in the case of CCE, Pondicherry Vs. CESTAT [2013 (7) TMI 53 - MADRAS HIGH COURT], where it was held that when the scrap had not arisen out of manufacture, but arising on account of wear and tear in the absence of specific provision for such waste and scrap in the relevant rules, duty could not be demanded. As to the leviability on the excise duty on spent Zinc Oxide Catalyst, we find that the same is not a new product arising during the manufacture of final Petroleum products. Since no new item is emerging as a result of the manufacture, duty is not liable on the same. Appeal allowed - decided in favor of appellant.
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