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TMI Blog2018 (1) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... his notification was superseded vide notification 53/88 which in turn was superseded vide notification 14/92. It is the case of the department that the assessee removed clandestinely aluminium scrap and plastic scrap during the period 1991-92 to 1995-96 either under delivery challan or without delivery challan. Revenue calculated the scrap quantity by taking the total purchase of inputs such as aluminium and aluminium scrap cleared under the cover of challan and the difference was assumed to have been cleared clandestinely and the demand was raised on such quantity as well as the quantity of aluminium scrap cleared on challan. The demand of excise duty on plastic scrap which was cleared under challan was also raised. Being aggrieved by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not avail the modvat credit or he should reverse the modvat credit attributed to the scrap. Since this condition was not complied with the appellants were liable to pay duty on the scrap. Therefore the order of the Commissioner (Appeals) is not legal and proper. 3. Shri P.V. Patankar, ld. Counsel appearing on behalf of the respondent submits that since the appellant were entitled for the exemption notification on the final product under 132/86 whatever modvat credit they have availed it stands reversed when they paid the duty on exempted goods. Therefore it amounts to non-availment of modvat credit. Hence the condition of notification 132/86 has been compiled with. Accordingly, no duty demand can be made. He further submitted that the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k, such aluminium gets scrapped and therefore that scrap material was used for the purpose of packing of final product which was cleared on payment of duty. Accordingly, the aluminium used as a mould for manufacture of plastic vessel tank and subsequently used for packing of final product, it is clearly covered by notification 217/86, hence no duty can be demanded on such scrap. As regards the aluminium scrap shown to have been cleared as per the challans same alone is liable for duty. Accordingly, duty needs to be recalculated only on the quantity of aluminium scrap shown in the challans. The remaining duty proposed by the revenue in respect of aluminium scrap is not sustainable and the same is set aside. As regards the plastic scrap, on p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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