TMI Blog2008 (8) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... e capital goods - revenues’ claim that they would qualify for waste and scrap as manufactured was not correct. Commissioner’s finding that the goods were not held as manufactured and no duty was leviable cannot be faulted - E/3933-3934/2004-EX(BR) - 666-667/2008-EX/(PB), - Dated:- 26-8-2008 - Ms. Archana Wadhwa, Member (J) and Shri M. Veeraiyan, Member (T) Shri S. Kumar, DR, for the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent-company under Rule 173Q; also imposed penalty of Rs. 1 lakh on Shri P.K. Jain, Vice-President. 3.2 Commissioner (Appeals) held that waste and scrap of metal which has been generated as a result of dismantling of used capital goods, did not arise out of process of manufacture and the same was not excisable and hence set aside the demand to the extent of Rs. 5,52,354/- relating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f a number of items and after use of such capital goods, these were dismantled and sold as scrap. In terms of Rule 57-S(2)(c) the assessee was required to pay the duty leviable on such waste and scrap. It was also proposed that they were required to pay duty on waste of the packages/containers in which modvatable inputs were received as per the provisions of sub-rule 18(a) of Rule 57F of Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en contested with any evidence. The claim that they would qualify for waste and scrap as manufactured was not correct. The ground was taken that dismantling of capital goods would be the process amounting to manufacture and that a distinct commodity namely waste and scrap came into existence. This is not acceptable. Therefore, the Commissioner's finding that the goods were not held as manufactured ..... X X X X Extracts X X X X X X X X Extracts X X X X
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