2005 (11) TMI 332 - AT - Central Excise

Summary

Issues: Claim for refund of excise duty on plastic waste and scrap under Notification No. 89/95-C.E.

The judgment pertains to the rejection of a claim for a refund of excise duty amounting to Rs. 2,42,403 paid by the appellants on plastic waste and scrap during the period from 18-5-95 to August 1997. The authorities denied the refund on the basis that the duty was correctly paid by the appellants as they were not eligible for the exemption under Notification No. 89/95-C.E. The proviso to the Notification specifies that the exemption does not apply to waste, scrap, and spares cleared from a factory where excisable goods other than exempted goods are also manufactured. Since the appellants were producing both excisable and exempted goods in their factory, the duty was deemed to be correctly paid on the plastic waste and scrap.

The appellate tribunal noted that despite the notice, no representation was made on behalf of the appellants. After hearing the learned Departmental Representative and examining the records, the tribunal affirmed the decision of the authorities below. It was concluded that the appellants were not entitled to the benefits of Notification No. 89/95-C.E., and thus the duty paid on the plastic waste and scrap was deemed to be correct. Consequently, the claim for a refund was deemed inadmissible, and the appeal was dismissed.