COMMISSIONER OF CENTRAL EXCISE Vs. SHREE SHYAM FILAMENT

JUDGEMENT

(1.) In this appeal which has been preferred by the Revenue against impugned order -in -appeal, the issue relates to the duty liability of the respondents in respect of the waste and scrap arising out the excisable goods, cleared by them without payment of duty.

(2.) The ld. JDR has contended that waste and scrap had arisen from the capital goods on which the credit was availed by the respondents, the same could be removed only on payment of duty in terms of Rule 57S(2)(C). On the other hand, the ld. Counsel has contended that the issue already stands covered in favour of the respondents by the Tribunal's judgment in CCE, Jaipur v. J.K. Industries Ltd. reported in 2004 (164) E.L.T. 332.

(3.) We have gone through the record. We find that the provisions Rule 57S(2)(C) have no application at all to the present case, as the said provisions are attracted only when the capital goods had been disposed of as scrap after availing Modvat credit. But in the case in hand, the scrap and waste cleared by the respondents, had arisen out of the manufacture of the excisable goods, the show cause notice, provision of law has been cited/referred under which the duty has been demanded. The Commissioner (Appeals) has rightly applied the ratio of law laid down by the Tribunal in the above said case wherein it has been observed that scrap in question is not covered by any Tariff heading and as such is not dutiable. We do not find any illegality in the impugned order passed by him and the same is upheld. The appeal of the Revenue is dismissed.