9911796707
TMI Blog1997 (1) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... G.R. Sharma, Member (T)]. The Commissioner of Central Excise has filed the captioned reference application stating that following questions of law arise out of the order of the Tribunal :- (i) That if the regenerated granules were cleared on nil rate of duty then the Modvat Credit cannot be allowed on the waste which was recycled. (ii) Whether the recyclable inputs can be treated as was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the respondents were also manufacturing polypropylene granules from so-called waste and scrap; that these granules are also being cleared at nil rate of duty. In reply to the show cause notice the respondents submitted that the waste, scrap and paring arise in the process of manufacture of BOPP film, therefore credit of duty taken on the inputs that went into the manufacture of waste, scrap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is abnormally high; that Rule 57D provides that the modvat credit in respect of inputs shall not be denied or varied on the ground that part of the inputs is contained in any waste, refuse or by-product; that the word `part (used in the Rule 57D) has not been defined in Central Excise Rules; that in common parlance `part means portion/fragment etc.; that it was logical and common usage tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited in which it was held that credit of inputs contained in waste arising during manufacture of BOPP films is covered by Rule 57D irrespective of quantum of waste and that credit of inputs contained in waste arising during the manufacture of BOPP films is covered by Rule 57D irrespective of quantum of waste. 3. On careful scrutiny of the impugned order together with the findings of the lowe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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