TMI Blog2018 (1) TMI 410X X X X Extracts X X X X X X X X Extracts X X X X ..... ein duty on capital goods, in terms of Rule 3 (5A) of CCR, 2004 has been demanded from the appellants. 2. Heard the parties and considered the submissions. 3. The facts of the case are that the appellants are manufacturer of Sugar and Molasses. They procured capital goods and after use of the capital goods, certain waste arises and the waste and the said scrap was cleared without payment of duty. Therefore, the show cause notices were issued to the appellants for payment of duty on waste and scrap of the capital goods, in terms of Rule 3 (5A) of CCR, 2004. The matters were adjudicated, demand of duty was confirmed alongwith interest and penalties were also imposed. Aggrieved from the said orders, the appellants are before me. 4. Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ential relief to the appellants. Further, the issue has been examined by this Tribunal in the case of Shriram Alkali Chemicals (supra). Wherein it has observed as under:- 2. Learned advocate submitted that the waste and scrap consisted of several items such as brass scrap, used SS spindle, used filter for lube oil/change oil, MS/SS/Brass scrap etc. He submitted that in all these cases duty has been demanded at flat rate without classifying items and without determining rate of duty leviable thereon. He relied upon the decisions of the Tribunal in the case of M/s. Shree Ganesh Khand Udyog Sahakari Mandal Ltd. - Order No.A/1152-1153/WZB/AHD/09, dated 29-5-09, J.K. Industries Ltd. reported in 2004 (164) E.L.T. 332 (Tri.) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut which virtually means that goods are to be assessed to duty unlike the decisions referred to by him where rate of duty does not depend upon classification of the goods and rate of duty as per tariff. In such a situation it cannot be said that Section 11A would not be applicable. The next contention submitted by the appellant was that waste and scrap of metal generated out of dismantling of machinery are due to wear and tare of machine parts cannot be treated as excisable goods leviable to duty as waste and scrap as defined in note 8(A) of Section 15 of CETA 1985. According to note 8(A) of Section 15, waste and scrap would mean metal waste and scrap from the manufacture or mechanical working of metals and metal goods definitely not usable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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