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2018 (4) TMI 823 - AT - Central ExciseLiability of Excise Duty - waste and scrap - The view of the Revenue is that after the introduction of Explanation under Section 2(d) for “excisable goods” if such scrap is being capable of bought and sold for a consideration the same shall be treated as marketable - Held that: - the various goods on which the Revenue seeks to collect Excise duty are all, admittedly, products incidentally arising during the manufacture of finished goods on which in any case, the appellant is discharging duty. These scrap material are not emerging due to a process of manufacture. Hence, they do not qualify to be taxed for excise levy. The view of various judicial pronouncement on this issue has been consistent and clear. Such scrap materials arising as incidental products and even if they were sold for a consideration cannot be considered as excisable products. Reference made to the decision in the case of Magnum Ventures vs. CCE, Ghaziabad [2014 (4) TMI 416 - CESTAT NEW DELHI], where it was held that the emergence of sludge and pulper waste during the course of manufacture of paper or paper board cannot be held to the result of any manufacturing activity. Appeal allowed - decided in favor of appellant.
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