2005 (6) TMI 143 - AT - Central Excise

Summary

Issues involved: Appeal against an Order demanding duty, penalty, and interest under Central Excise Act, 1985 and Central Excise Rules, 2002.

Mineral Oil Sludge Excisability: The issue is whether Mineral Oil Sludge is excisable. A circular by the Ministry of Finance clarified that it falls outside the scope of the Central Excise Tariff Act, 1985 as it is not a manufactured product. Pending assessment should be finalized based on this clarification.

Waste/Scrap from Packing Material: The waste/scrap from packing material generally does not require reversal of credit. The appellants' claim in this regard should be considered. If the Department has evidence of G.I. wire scrap cleared, arising from G.I. wire as input, duty can be recovered at the applicable rate provided for such G.I. wire in the Tariff.

Waste/Scrap of Capital Goods: Waste/scrap of capital goods must be cleared by paying appropriate duty based on the classification in the Tariff at a depreciated value.

The Tribunal allowed the appeal in part, remanding the case to ascertain the correct classification under the Tariff Act, excluding sludge and producing material covered by relevant orders and court decisions. The demand for duty should be confirmed after determining the correct classification, with penalties to be decided subsequently.