SESHASAYEE PAPER AND BOARDS LTD. Vs. CCE

JUDGEMENT

(1.) THE revenue's application is for early hearing and change of cause title. The application is allowed and we take up the appeal for disposal.

(2.) WE have perused the records and heard both sides. The duty demand of over Rs. 20.00 lakhs remains confirmed against the appellants. The demand is in respect of waste and scrap cleared by them for a period of five years. It has been held that the waste and scrap are liable to duty and the appellant has cleared them without payment of duty. Reliance has been placed by the revenue on Note 8(a) of Section 15 of the CETA. The contention of the counsel for the appellant is that the appellant is a manufacturer of paper and paper board. It does not carry out manufacture of any engineering products out of metal. It has only a workshop which attends to incidental repair of machinery installed. Ld. Counsel has submitted that the scrap in question arose from discarded machinery and from other items of waste. They were not arising in the manufacture of any excisable goods. Counsel has also emphasised that no credit had been taken by the appellant in respect of the machinery or other items which were subsequently sold as waste and scrap. Counsel has also taken us through many decisions of this Tribunal which are as follows:

(3.) THE scope of the levy remains settled by the decision of the Apex Court in the aforesaid case. Para 8 of the judgement may be noted in particular, which is as follows: