TMI Blog2003 (10) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... whether waste and scrap has arisen out of machinery in respect of which Modvat credit of the duty has been availed of by them. 2. Shri S.P. Ojha, learned Consultant, submitted that the appellants manufacture sugar and molasses; that the Commissioner (Appeals) under the impugned order has confirmed the demand of duty and penalty in respect of waste and scrap of machines holding that the said was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been held by the Supreme Court in the case of Oudh Sugar Mills Ltd. v. Union of India - 1978 (2) E.L.T. J172 that the findings based on such show cause notice are without any tangible evidence and are based only on inferences involving unwarranted assumptions. 3. Countering the arguments, the learned SDR reiterated the findings as contained in the impugned order passed by the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. We agree with the learned Consultant that the question put up to the Finance Manager and the answer given by him does not indicate at all that the waste and scrap in question had been generated out of the capital goods in respect of which Modvat credit was availed of. In view of this, the demand of duty is not sustainable as there is no evidence about the fact that Modvat credit had been taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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