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TMI Blog2004 (4) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... Gupta, Jt. CDR, for the Respondent. [Order per : Moheb Ali M., Member (T)]. The application for waiver of pre-deposit of duty and penalty arose out of the order of Commissioner of Central Excise, Nagpur. 2. In the impugned order the Commissioner demanded Central Excise duty of Rs. 1,21,32,329/- being the duty on Furnace Oil/Mineral Oil Sludge, Waste and Scrap arising from inputs and pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f inputs on which credit has been availed, it is argued that some of the waste material like Titanium Dioxide is not excisable, G.I. wire scrap arises out of packing materials of inputs, some the scrap cleared did not arise out of any manufacturing activity and some of the scrap cleared is not a marketable commodity. 6. In regard to waste and scrap of capital goods the contention is that provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory. In regard to other waste and scrap he argued that this scrap has arisen out of the inputs and capital goods on which the applicant availed of Modvat credit. In terms of Rule 57F (18) and the erstwhile Rule 57F(5) duty has to be paid when such waste and scrap is removed. In regard to the plea that the waste and scrap is not marketable, he argued that the very fact that the sludge, waste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to trade. 11. Further it appears that some of the scrap in this case is such that it has not resulted out of any process of manufacture. On the limitation as well, the applicants case needs a careful consideration. All in all, we hold that the applicant succeeded in making a strong prima facie case in their favour. Having regard to the facts and the case law cited we hold that the applicants ..... X X X X Extracts X X X X X X X X Extracts X X X X
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