2006 (7) TMI 88 - AT - Central Excise

Dutiability Demand of CED on waste and scrap by the department Commissioner(Appeal) after undertaking all the fact set aside the demand and allow the appeal with consequential relief

Summary

Issues: Appeal against Order-in-Appeal setting aside Order-in-Original on Central Excise duty demand for Waste and Scrap; Classification of Waste and Scrap as non-dutiable; Applicability of various judgments on non-dutiable items.

In this case, the appeal was made against the Order-in-Appeal that overturned the Order-in-Original regarding the Central Excise duty demand on Waste and Scrap. The Commissioner (Appeals) held that the Waste and Scrap, generated from various materials like empty barrels, barrel sheets, fire bricks, grinding wheels, coal powder, HDPE bags, and iron scrap, were not dutiable. The Counsel argued that these items were Waste and Scrap and not excisable, citing multiple judgments supporting this view. The Tribunal considered the matter and the judgments cited, concluding that the items cleared as Waste and Scrap were not dutiable due to wear and tear in the factory workshop. The demand on Waste and Scrap was set aside based on the applicability of the cited judgments, leading to the appeal being allowed with consequential relief.