2004 (2) TMI 545

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..... e Respondent. [Order]. -  The issue relates to demand of duty on the plastic scraps cleared by the appellants to their job workers under Rule 57F(3) of the Central Excise Rules, 1944. The appellants manufacture plastic containers out of plastic granules. Input credit is taken in respect of duty paid on plastic granules. During the process of manufacture of final goods (plastic containers) " .....

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..... s wherein great emphasis has been laid on the facts that, material under removal is "waste and scrap". Having so held, it is claimed that the removal under Rule 57F(3), without the payment of duty is not permissible. 3. It is to be seen that, even though the material may be termed as "waste and scrap," the same being a material derived after subjecting the virgin plastic granules to the proc .....

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..... ctory is permissible. In this case, the plastic waste material had gone to a job worker, who had ground the waste and scrap material into re-usable "granules and these goods are returned to the appellant factory for further manufacturing process". So, when the appellants can demonstrate that removal of material under Rule 57F(2)(b) requires no payment of duty, asking the appellants to make payment .....

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