2003 (7) TMI 185 - AT - Central Excise

Summary

Issues involved:
Appeal against demand confirmed for waste and scrap of iron and steel, copper and brass, plastic scrap, and rubber scrap; Time-barred demand; Allegation of suppression of facts.

Analysis:
The appellants challenged the demand confirmed by the Commissioner of Central Excise for waste and scrap of various materials. The appellants contended that waste and scrap of iron and steel arose from dismantling old machines used in manufacturing the final product, without availing Modvat credit. Citing the Tribunal's decision in a previous case, the appellants argued that such waste and scrap are not excisable goods. Similarly, regarding copper and brass scrap, the appellants claimed it consisted of unused wires and cables, relying on a Tribunal decision that unserviceable wires and cables are not excisable goods. Additionally, the appellants argued that plastic waste, used as packing material for received inputs, is not excisable goods, citing a Supreme Court decision. The appellants also raised a time-barred defense, stating that the demand was based on alleged suppression of facts related to paper waste, not the waste and scrap in question.

The Tribunal found in favor of the appellants, ruling that the demand for waste and scrap of iron and steel, copper and brass, and plastic waste was not sustainable. The Tribunal highlighted that the waste and scrap of iron and steel, arising from dismantling old machines without availing credit, were not dutiable based on previous decisions. Similarly, the waste and scrap of copper and brass, consisting of unused wires, were deemed non-dutiable. The demand for plastic waste, considered packing material, was also deemed unsustainable based on a Supreme Court decision. The Tribunal further noted that the demand was time-barred as there was no allegation of suppression of facts regarding the waste and scrap in question, leading to the dismissal of the demand.

In conclusion, the Tribunal set aside the demand for waste and scrap of iron and steel, copper and brass, and plastic waste, along with associated penalties. The appeal was disposed of in favor of the appellants based on the analysis and findings provided.