COMMISSIONER OF C. EX. Vs. BALLARPUR INDUSTRIES LTD.

JUDGEMENT

(1.) THE instant appeal under Section 35G of the Central Excise Act, 1944 is directed against order dated 28 -7 -2003, passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi (for brevity 'the Tribunal') [ : 2003 (158) E.L.T. 618 (Tri. -Delhi)]. The Tribunal has recorded the statement of the party -respondent that they would not raise any argument with regard to demand on rubber scrap and the same has been upheld by the Tribunal. However, on the other two issues, the demand of the Revenue -appellant has been set aside. The first issue is with regard to waste of scrap of iron and steel which had arisen out of dismantling of old/worn out machines used in the manufacture of final products. The Tribunal has found that the party -respondent did not avail the Modvat credit on these capital goods. Moreover, the waste & scrap of iron and steel which had arisen out of dismantling of old worn out machines is not exigible item. The Tribunal has placed reliance on its earlier view taken in the case of CCE v. Diamond Cement - : 2002 (52) RLT 659. On second issue concerning waste & scrap of copper and brass, the Tribunal has found that the aforesaid scrap has emerged out of unused wires and cables, winding wires of electric motors etc. In that regard the Tribunal has placed reliance on its judgment in the case of Finolex Cables Ltd. v. CCE and C. - : 1998 (100) E.L.T. 517 (T) which lays down that unserviceable pieces of wires and cables are not exigible goods. Third item pertains to plastic waste. The Tribunal has accepted the contention of the party -respondent that plastic waste was nothing but a packing material in which inputs were received by them and the packing material was not exigible item. In that regard reliance was placed on the judgment of the Hon'ble Supreme Court in the case of CCE v. West Coast Industrial Gases Ltd. - : 2003 (155) E.L.T. 11. The Tribunal has further found that the show cause notice did not disclose any allegation of suppression of information in respect of clearance of waste and scrap in dispute without payment of duty. In the show cause notice, the allegation was that the party -respondent had suppressed the fact about the manufacture and clearance of paper waste for home consumption which in no way connected to the demand in respect of waste and scrap of other articles other than the paper waste. On the basis of the aforesaid facts, the Tribunal has set aside the demand in respect of all the items except upholding the demand only to the extent it has been conceded by the party -respondent in respect of rubber scrap. We have heard learned counsel for the appellant at some length and are of the view that the order of the Tribunal does not suffer from any legal infirmity. The learned counsel for the Revenue has not been able to highlight any provision of law which may show that the scrap of iron and steel; or copper and brass or even plastic waste which is a packing material would be exigible items. To cap it all the Tribunal has found the demand to be time -barred as there are no allegation with regard to suppression of facts in respect of clearance of waste and scrap of iron and steel; wires/cables and plastic. The appeal does not raise any question of law much less a substantive question of law. Accordingly, the same is dismissed.