9911796707
TMI Blog2001 (2) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Modvat credit on the raw materials - granules used in the manufacture of such pipes and fittings. During the course of manufacture of such pipes and fittings, some waste and scrap - end bits, cutting bits, rejects etc. were generated on which the appellants paid the excise duty. Thereafter, before removing such waste and scrap to their job workers, they took credit of the same paid by them by way of excise duty on their waste and scrap. They availed of the Modvat credit equivalent to the amount of duty paid on such waste and scrap by raising invoices on themselves. It was alleged in the three show cause notices issued that the appellants irregularly availed of the Modvat credit. After making a reference to Rule 57F(5)(a) of the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Tariff. They could only be removed on payment of appropriate duty. After the appellants had taken credit of the duty paid, the removal in this case was without payment of duty. The manufacturers could not pay duty and then take credit. He submitted that such removals of waste and scrap were covered by the provisions of Rule 57F of the Rules and could be removed only on payment of duty. 3. We have carefully considered the matter. The appellants were engaged in the manufacture of plastic pipes and fittings (final products) and were using duty paid plastic granules (inputs) in the manufacture of said final products. They were availing of the benefit of Modvat credit in respect of the Central Excise duty having been paid on their in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iction over the factory and after obtaining dated acknowledgement of the same could remove the inputs as such or after the inputs have been partially processed during the course of manufacture of final products, to a place outside the factory under the cover of a challan prescribed in this behalf by the Central Board of Excise & Customs, for certain specified purposes. The inputs in this case were granules, and what was removed were not the granules but the scrap. The scrap was also not partially processed granules. Thus, the removal without payment of Central Excise duty was not covered by the provisions of the law. Under Rule 57F(5) of the Rules, any waste arisen from the processing of inputs in respect of which credit had been taken wer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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