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2009 (12) TMI 385 - AT - Central ExciseExcisability- The Appellant is a manufacturer of aerated waters and they have availed Cenvat credit of duty paid on glass bottles. A show-cause notice was issued alleging that the waste and scrap of broken glass bottles generated in the factory of the party is an excisable commodity as a separately identifiable goods and classifiable under sub-heading No. 7001.10 and attracts duty, accordingly proposing demand of Rs. 2,02,059/- relating to the period 1-12-2002 of 30-9-2003. The original Authority held that waste and scrap arising out of bottles broken cannot be considered as having been manufactured or the final product viz. scrap be treated as excisable goods and accordingly dropped proceedings on the show-cause notice. On appeal by the Department, Commissioner (Appeals) held that the scrap is a final product within the ambit of Cenvat Credit Rules and, therefore, there is no exemption on removal of waste and scrap during the period under demand. Held that- impugned item not to be treated as an excisable product emerging out of process of manufacture.
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