MARUTI UDYOG LIMITED Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE issue involved in this appeal filed by M/s. Maruti Udyog Ltd. is whether Central Excise Duty is payable on the waste and scrap of Mould Steel and Iron and waste and scrap of aluminium and whether extended period of limitation is invokable for demanding the duty.

(2.) BRIEFLY stated the facts are that the Appellants manufacture Motor vehicles and avail of the Modvat credit of the duty paid on inputs under Rule 57A of the Central Excise Rules. As they did not pay excise duty while clearing the waste and scrap of both aluminium and iron and steel obtained during the process of manufacture, a show cause notice dated 1 -5 -92 was issued to them for demanding duty for the period from April, 1987 to May, 1990.

(3.) THE Collector confirmed the demand of duty amounting to Rs. 25,54,714/ - and imposed a penalty of Rs. 1,00,000/ - holding that the waste and scrap of iron arose from the goods falling under Headings 72.08, 73.25 and 73.07 as mentioned in notification and since they had availed of Modvat credit on these goods, no exemption from duty was available in respect of waste and scrap under Notification Nos. 54/86, 91/88 and 171/88 -C.E.; that benefit of Notification No. 182/ 84 -C.E., dated 1 -8 -84 was not available in respect of aluminium waste and scrap as the Modvat credit was availed of the duty paid on cast article of aluminium. The Collector also came to the conclusion that extended period of limitation is invokable as the Appellants had not intimated to the Department about emergence and clearance of waste and scrap.