1999 (4) TMI 156

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..... .R. Sharma, Member (T)]. -  This is an appeal against the confirmation of the demand of duty of Rs. 9,702/-, disallowance of Modvat credit amounting to Rs. 10,310.40 and imposition of penalty of Rs. 10,000/-. 2.  The facts of the case briefly stated are that the appellants are manufacturers of nickel scrap and other goods. It was noticed that the appellants had manufactured and cleared .....

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..... f duty of excise. They referred to the decision of this Tribunal in the case of Rapicut Carbides Limited reported in 1989 (41) E.L.T. 259 stating that the Tribunal held that Notification No. 217/98 (sic) was covered by the Central Duties of Excise (Retrospective Exemption) Act, 1986. It was also contended that the waste and scrap which arose during the course of manufacture of articles of nickel w .....

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..... these products which are used for captive consumption in the same factory was not applicable from 1-3-1986 and was only prospective i.e. applicable from 2-4-1986 onwards. We have perused the relevant chapter headings under Chapter 75. We are in agreement with the lower authorities that the nickel waste and scrap will be dutiable under chapter sub-heading 7501.10. The question, therefore, remains .....

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..... the Tribunal, we hold that Notification No. 217/86 dated 2-4-1986 will be effective from 1-3-1986 in terms of Central Duties of Excise (Retrospective Exemption) Act, 1986, therefore on this allegation, we set aside the impugned order. 5. The second allegation is about disallowance of Modvat credit. In the case of the appellant, the final product is nickel micro screens and in the input is n .....

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..... n need not be necesary. In this view of matter, we hold that the disallowance of credit on nickel used for the manufacture of matrices, is not sustainable in law. 6.  Since the allegation No. 1 and 2 have not been confirmed, therfore, the question of imposition of penalty does not arise. Having regard to the above findings, the impugned order is set aside the appeal is allowed.
Case laws .....

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