1999 (11) TMI 545 - AT - Central Excise

Summary

Issues involved: The appeal filed by M/s. Maruti Udyog Ltd. questions the liability of Central Excise Duty on waste and scrap of Mould Steel, Iron, and aluminium, and the applicability of the extended period of limitation for duty demand.

Central Excise Duty on Waste and Scrap: The Collector confirmed duty demand on waste and scrap of iron and steel, citing that Modvat credit availed on related goods disqualifies exemption under specific notifications. The Appellants argued waste generation during manufacturing is inevitable, citing precedents like Dhampur Sugar Mills Ltd. v. C.C.E. They contended that waste and scrap of aluminium were exempt under Notification No. 182/84 until 1-11-1987.

Exemption Claims: The Appellants claimed exemption for waste and scrap of iron and steel under Notification Nos. 54/86, 91/88, and 171/88-C.E., asserting the waste did not fall under specified chapters and no condition on Modvat credit was mentioned in the notifications.

Decision and Rationale: The Tribunal found duty payable on waste and scrap of aluminium from 2-11-87 due to Modvat credit availed. For iron and steel waste, the Tribunal disagreed with the Appellants' classification claims, upholding duty liability based on specified conditions in relevant notifications. The Tribunal noted the Appellants' failure to provide details to the Department, allowing the Department to invoke the extended period of limitation for duty demand. The Tribunal directed reassessment of duty considering relevant factors and upheld the imposed penalty.

Conclusion: The appeal was disposed of with directions for reassessment of duty, considering exemption aspects and penalty upheld based on findings.