TMI Blog2017 (7) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... cost of transportation and to be treated as revenue expenditure. The value of final product does not include such waste of paper used for packing. When waste and scrap of paper is used, in whichever manner, for safe transport and delivery of the final product and the final product suffers duty on FOR destination basis, we find no reason to treat the value of waste and scrap separately for duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les, 2004. During the course of manufacture of paper tubes/ cores, waste paring and scrap is generated. The appellant were clearing such waste and paring on payment of Central Excise duty. They also use these waste and paring for packing of goods cleared to their customers. The final products cleared to the customers suffer duty on FOR destination basis. The dispute in the present case is the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst the appellant resulted in confirmation of central excise duty of such waste and paring along with imposition of penalties under rule 25 of Central Excise Rules, 2002. 2. The Ld. Counsel for the appellant submitted that the transaction value for the final product includes all the expenditure including packing used for protecting paper tubes and cores during the course of transportation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification 67/1995-CE. The only ground mentioned is that the said scrap and paring is used as a cushioning material in the truck for safety of the final product. As such the said cushioning material are to be considered as part of cost of transportation and to be treated as revenue expenditure. The value of final product does not include such waste of paper used for packing. We find that the reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and delivery of the final product and the final product suffers duty on FOR destination basis, we find no reason to treat the value of waste and scrap separately for duty purpose by denying the exemption under Notification 67/1995-CE. We find no merit in the impugned order on this issue. Accordingly, we set aside the impugned orders and allow the appeals. [Pronounced in the open Court on 15. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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