2006 (11) TMI 389

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..... t. [Order per : T.K. Jayaraman, Member (T)]. -  This appeal has been filed against the Order-in-Appeal No. 31/2005 dated 29-11-2005, passed by the Commissioner of Customs & Central Excise (Appeals), Guntur. 2. The appellants are the manufacturers of Cotton Yarn which are excisable commodity. The Asst. Commissioner confirmed the demand of Rs. 35,520/- for the period from January 2001 t .....

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..... ri Anil Kumar, learned JDR appeared on behalf of the Revenue. 4. The learned Chartered Accountant urged the following points :- (i)  The appellants are neither manufacturers of iron and steel nor they do undertake any fabrication activity subject to duty of excise. Therefore Note 8 (a) of Section XV of the Central Excise Tariff have no application. (ii)    The following .....

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..... espect of waste and scrap generated during the course of manufactures of cigarettes. (iv)   According to sub-rule 5(A) of Cenvat Credit Rules introduced vide Notification No. 27/2005-C.E. (N.T.), dated 16-5-2005 - "5A : - If the capital goods are cleared as waste and scrap the manufacture shall pay an amount equal to the duty leviable on transaction value."     &nb .....

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..... Ltd. [2003 (161) E.L.T. 285 (Tri.)] which has been affirmed by the Apex Court as reported in 2004 (163) E.L.T. A53 (S.C.)] (b)      CCE, Delhi v. Machino Montell (I) Ltd. [2004 (168) E.L.T. 466 (Tri.-LB.)] (c)      CCE, Mangalore v. Sree Krishna Pipe Industries [2004 (165) E.L.T. 508 (Kar.)] 5. The learned JDR reiterated the findings in th .....

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..... reover, Chapter Note 8(a) of Section XV would be applicable in respect of metal waste and scrap arising from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting up, wear or other reasons. In the present case, the waste and scrap is only on account of worn out parts of the old machinery. Hence the duty is not demanded on this. .....

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