COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD Vs. NIRMA LTD.

JUDGEMENT

(1.) BEING aggrieved with the order passed by Commissioner (Appeals), Revenue has preferred the present appeal. We have heard both the sides duly represented by Shri M.M. Mathkar, JDR and Shri M.A. Patel, Consultant.

(2.) THE respondents are engaged in the manufacture of detergent powder, cake and soap etc., They procured duty paid corrugated boxes and availed the Modvat credit of duty paid thereon. This so happens that during the course of manufacture, some of the corrugated boxes get damaged and remained of no use to the respondent. Accordingly, such waste and scrap of corrugated boxes is cleared by them.

(3.) THE issue in the present appeal is that the respondent have cleared the said waste and scrap at nil rate of duty in terms of Notification No. 38/90 dated 20 -2 -1990. Proceedings were initiated against them proposing confirmation of demand of duty on the said waste and scrap of corrugated boxes on the ground that they are not covered by the said notification. Accordingly duty of Rs. 7,370/ - was confirmed against them along with imposition of personal penalty of Rs. 1,000/ -. On appeal against the above order, Commissioner (Appeals) observed that apart from the fact that the appellant would be entitled to clear the waste and clear at nil rate of duty, they were also to be covered by the provisions of Rule 57D. Accordingly, he set aside the order of the Asst. Commissioner and allowed the appeal. Hence the present appeal by the Revenue.