2007 (11) TMI 152 - AT - Central Excise

Appellants used several duty paid inputs and after taking credit, Appellants manufactured Accinox ZC by processing those inputs - In the process small quantities of waste is generated which has been destroyed by them by burning - Appellants have destroyed the after giving due intimation to the Department - fact that two small consignments were cleared on payment of duty does not change the nature of waste which was of no use to any one so demand of duty on such waste is not justified

Summary

The Appellate Tribunal CESTAT, Kolkata ruled in favor of the Appellants regarding the destruction of waste generated during manufacturing. The waste was destroyed in accordance with Rule 57F(4) after taking credit for inputs. The Tribunal found that the duty paid on two test clearances for unusable material was not justified. The orders imposing duty, penalty, and interest were set aside, and the appeal was allowed.