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2008 (12) TMI 341 - CESTAT, NEW DELHIExcisability- The finding of the Adjudicating Authority is that the respondents cleared M.S. and C.I. scrap without payment of duty, which were generated during the manufacture of dies, jigs, fixture and tooling etc. It is observed that these scraps are chargeable to duty or may be exempted if consumed captively in the factory premises and the scrap so generated classified under sub-heading 7204.90 of the Schedule to the Central Excise Tariff Act, 1985. Commissioner (Appeals) observed that M.S. and C.I. scrap generated during the manufacture of dies, jigs, fixtures and tooling etc. and removed without payment of duty in respect of the inputs on which no Modvat credit was availed by the respondents and would not be liable to duty. Held that- we find that the respondents had taken a stand before the Commissioner (Appeals) that the items used in relation of repair and maintenance of work of factory, plant and office building. The learned DR placed a copy of the letter dated 6-11-08 issued by the Superintendent addressed to the learned DR, wherein it is stated that the respondents had mostly used its items for repair and maintenance of dies/jigs, fixtures, tooling etc. It appears that there is a dispute on the use of the items as to whether the items were used in the manufacturing or repairing of the items. We find that facts are required to be verified in the light of the decision of the Hon’ble Rajasthan High Court UOI v. Grasim Industries Ltd. - 2008 (229) E.L.T. 328 (Raj.). In view of the above discussions, we set aside the orders and the matter are remanded to the Adjudicating authority to decide afresh on the basis of use of items and in the light of the decision of the Hon’ble High Court in accordance with law. All the appeals are allowed by way of remand.
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