TMI Blog2018 (1) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... of manufacture of plastic vessel tank the aluminium was used as a mould. After manufacture of such vessel tank, 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. 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 N/N. 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. The matter is remanded to the adjudicating authority only for requantification of demand - appeal allowed by way of remand. - E/3368/06 - A/91703/2017 - Dated:- 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Order-in-Original. Therefore, revenue filed this appeal. 2. Shri A.B. Kulgod, Ld. AC (AR) appearing on behalf of the revenue reiterates the grounds of appeal. He submits that all the aluminium material used by the appellants which was used as mould for manufacture of plastic vessel converted into scrap. However, only small quantity of scrap was shown as clearance under challan whereas the entire aluminium scraps cleared by the appellant without payment of duty. He further submitted that respondents have claimed nil rate of duty under notification 132/86. The said issue was decided by the Tribunal vide Order no. 129-130/96/CE dated 12.03.1996 and order no. 582-584/96 dated 12.09.1996 wherein it was held that the product namely pipes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a packing material for manufacture of final product and clearance thereof. Therefore it is not the clearance of scrap and the packing materiel which is used in the manufacture of final product is otherwise exempted under notification 217/86-C.E. dated 01.03.1986. 4. As regards the demand of the plastic scrap, he submits that the plastic scrap was exempted under notification 53/88 which was superseded vide notification 14/92-C.E. according to which the plastic scrap was exempted under sr. No. 19 of the table appended to notification. He submits that the aluminium scrap which is cleared under challan is only liable for duty and all other demand is not sustainable. 5. We have carefully considered submission made by both sides and perus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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