TMI Blog2016 (8) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... n Appeal dated 08.03.2007 which set aside the Order in Original dated 29.12.2005 and confirmed the duty demand of ₹ 72,344/- alongwith equal mandatory penalty. In the show cause notice dated 22.09.2000 the appellant was required to show cause as to why the said amount of duty should not be demanded alongwith interest and penalties on the ground that during the period March, 1997 to March, 1998 the appellant cleared various items of scrap generated during the course of manufacture of excisable goods without payment of duty. In contravention Rules 91, 52 A, 57 S (2) C, 173 F, 173G and 226 of Central Excise Rules,1944. The Show-Cause-Notice also stated that as per Rule 57 S (2) (c) of Central Excise Rules, where capital goods are sold as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... items of scrap generated during the course of manufacture of excisable goods through their private gate passes without payment of Central Excise duty, (details of which are enclosed in Annexure A ), in contravention of Rules, 9 (1), 52A, 57S(2) C, 173F, 173G 226 of Central Excise Rules, 1944. The value of these goods was ₹ 4820295/- on which the amount of duty involved @ 15% adv. Comes ₹ 7,23,044/-. As per Rule 57S (2) C of Central Excise Rules, 1944 where capital goods are sold as waste scrap, the manufacturer shall pay the duty leviable on such waste and scrap, but in the instant case, the assessee neither indicated any sale in the R.T. 12 returns nor infomed the department about the sale of scrap of various items. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion they are liable to pay duty in view of the contemporary Rule 57 S (2) (c) of the erstwhile Central Excise Rules, 1944. The contention of the respondent that scrap was of non modavtable capital goods is not acceptable because the respondent has failed to produce evidence in their support. On the contrary, the respondent has contended that the waste and scrap has generated during the course of manufacture or during the mechanical working of metals. Then only it will be excisable. Further, contended that Rule 57(F) 18 and Rule 57S (2) (c) of Central Excise Rules, 1944 provided that the duty is leviable on the waste and scrap of inputs and capital goods by treating as if these goods are manufactured in the factory. The necessary test for le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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