CCE Vs. PEPSI FOODS LTD.

JUDGEMENT

(1.) Examined the records and heard both the sides.

(2.) During the period March to August, 1998, the respondents had removed empty containers of Modvatable inputs as waste and scrap, without payment of Central Excise duty. The Department demanded duty on such waste and scrap, and both the adjudicating and first appellate authorities held that any such duty was not liable to be paid. Hence the present appeal of the Revenue. It is submitted by both the sides that the above issue stands squarely covered by the Supreme Court decision in CCE v. West Coast Industrial Gases Ltd. 2003 -Taxindiaonline -34 -SC -CX. The authorised representative of the respondents has also produced a copy of the CBEC circular No. 721/37/2003 -CX dated 6.6.2003 wherein it is clarified that "not duty shall be payable and no reversal of credit is also warranted on waste package/containers used for packing inputs, on which credit has been taken, when cleared from the factory of the manufacture availing Modvat/Cenvat credit".

(3.) This circular of the Board has been issued in the light of the Apex Court's decision (supra). It has been held by the Apex Court that no duty is leviable on such containers as above, cleared from the factory and that Rule 57 -F of the erstwhile Central Excise Rules, 1944 is not applicable. As the issue stands squarely covered in favour of the respondents, the impugned order is affirmed and the present appeal is rejected.