2003 (8) TMI 403 - AT - Central Excise

Summary

The appeal was against the demand for duty on scrap manufactured and cleared without payment of duty. The appellant argued for exemption under Entry 24 of Notification 53/88, which exempts waste bearing scrap of plastic if arising from goods on which duty has been paid. The Commissioner's basis for the demand was Modvat credit on the plastic, but since the condition for exemption was satisfied, duty was not demandable, and penalty not imposable. The appeal was allowed, and the order set aside.