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2018 (1) TMI 47 - AT - Central ExciseClandestine removal - It is the case of the department that the assessee removed clandestinely aluminium scrap and plastic scrap during the period 1991-92 to 1995-96 either under delivery challan or without delivery challan - whether the appellants have cleared the aluminium scrap which was alleged by the revenue and whether the plastic scrap cleared by the appellants is liable to duty? - Held that: - As regards aluminium scrap we find that the only scrap which was cleared out of factory is those scrap for which the challans were issued. The remaining quantity was used in the manufacture of final product as a packing material. During the course of manufacture of plastic vessel tank the aluminium was used as a mould. After manufacture of such vessel tank, such aluminium gets scrapped and therefore that scrap material was used for the purpose of packing of final product which was cleared on payment of duty. The aluminium used as a mould for manufacture of plastic vessel tank and subsequently used for packing of final product, it is clearly covered by N/N. 217/86, hence no duty can be demanded on such scrap. As regards the aluminium scrap shown to have been cleared as per the challans same alone is liable for duty. The matter is remanded to the adjudicating authority only for requantification of demand - appeal allowed by way of remand.
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