2002 (11) TMI 239 - AT - Central Excise

Summary

Issues:
Challenge against duty demand and penalty imposition on waste and scrap of firebricks under Rule 57S(2)(C) of the Modvat provisions.

Analysis:
The appellant, engaged in cement manufacturing, challenged an order confirming duty demand and penalty imposition on waste and scrap of firebricks sold, classified under heading 6901.90 as fireclay bricks. The firebricks, used to line the Kiln shell, were dismantled after becoming useless and sold for re-processing. The Commissioner imposed duty under Rule 57S, considering the sale as used firebricks. The appellant argued that dismantled firebricks are waste and scrap, not dutiable, citing precedents. The Tribunal agreed, noting the dismantling process and the nature of waste and scrap. It found no basis for the duty demand, setting aside the order and allowing the appeal.

Conclusion:
The Tribunal ruled in favor of the appellant, setting aside the duty demand and penalty imposition on waste and scrap of firebricks. It held that the dismantled firebricks are waste and scrap, not dutiable under Rule 57S(2)(C), in line with precedents and the nature of the dismantling process. The decision highlights the distinction between waste and scrap and dutiable goods, providing relief to the appellant in this case.