TMI Blog2016 (3) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... mption available to waste and scrap. We also find that in a separate proceedings the duty on waste and scrap attributable to coaches exported out of India have been confirmed and the amount has already been paid by the assessee. We find that the original authority in that order categorically found that the assessee are liable to pay Central Excise duty of ₹ 5,81,185/- on waste and scrap arising from the manufacture of 72 bogies cleared by them under bond without payment of duty to Vietnam. He also noted that the said duty stand paid by the assessee on 25.5.2002. In this background, we find the confirmation of demand by the present impugned order on the waste and scrape on this ground again is untenable and requires to be set aside. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey are liable to pay duty on the scrap generated during the manufacture of Railway coaches. The proceeding initiated were concluded by an order-in-original dated 6.6.2005. 2. Learned Commissioner dropped the demand pertaining to duty on cutting and slitting of HR /CR coils, but confirmed the demand pertaining to duty on scrap. A penalty of ₹ 25 lakh was also imposed on the assessee under section 11AC of the Central Excise Act, 1944. Aggrieved by the duty demand on scrap and penalty, the assessee is in appeal. 3. Revenue also filed an appeal praying for penalty equal to duty in terms of section 11AC. Both these appeals are taken up together for decision. 4. The assessee in their appeal contested the duty demand on the scrap g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period which is totally incorrect and against the provisions of notification No. 89/95 CE. The denial of exemption for waste and scrap in respect of those scrap attributable to non-exempted clearance of final product (railway bogies) has already been settled by the adjudication order of Additional Commissioner and duty stands discharged by the assessee. 6. Learned AR reiterated the findings of the original authority and stated that export goods cannot be considered as exempted goods and hence, the conditions of notification No. 89/95-CE has not been fulfilled. Accordingly, he reiterated that the demand has been rightly confirmed on waste and scrap generated by the assessee. 7. We have heard both the sides and examined the appeal reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority in that order categorically found that the assessee are liable to pay Central Excise duty of ₹ 5,81,185/- on waste and scrap arising from the manufacture of 72 bogies cleared by them under bond without payment of duty to Vietnam. He also noted that the said duty stand paid by the assessee on 25.5.2002. In this background, we find the confirmation of demand by the present impugned order on the waste and scrape on this ground again is untenable and requires to be set aside. Considering the above discussions and findings, we allow the appeal of the assessee. As the appeal of the assessee has been allowed, the Revenue appeal for enhancement of the penalty is also disposed of. ( operative part of the order pronounced in the ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
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