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TMI Blog2007 (2) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... chapter 72 and more particularly sub-heading 7204.90 and dutiable under Central Excise Act, 1944 read with Central Excise Tariff Act, 1985. 2. The ld. Counsel appearing for the appellant submitted that Excise Duty of Rs. 1,93,123.00 and penalty of Rs. 1,95,000.00 were levied on the appellant for the sale of wornt out roles of the rolling mill during the period from S/6/1996 to 18-6-1996 were once capital goods and no Modvat Credit was taken either on manufactured goods by the appellant or any waste and scrap generated during manufacture of the dutiable goods like iron and steels and products thereof falling under chapters 72, 73 and 84 of Central Excise Tariff Act, 1985. He, further, submitted that no goods manufactured can by any st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of Rs. 12,8,515.00. In the course of the adjudication proceeding, the Ld. Adjudication officer held that the goods in question sold were waste and scrap, obtained from conversion of rolls resulting in waste and scrap due to use during manufacturing process. He also found that the assessee had availed benefit of modvat facility on the capital goods like roller when the modvat facility was introduced since 1986 till 1994. It was also his observation that the steel rolls were subjected to modvat credit availed by the assessee. He, further, held that the widened definition of waste and scrap covered the goods of the appellant which was subject matter of show cause notice. Consequently, the impugned demand of duty and penalty was the outc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... locomotives becoming scrap and waste shall be free from the purview of assessable value and not excisable since not manufactured. In sequence it was also held in A.C.C. Limited v. CCE, Bhopal reported in 2001 (133) E.L.T. 375 (T) = 2001 (46) RLT 745 (CEGAT-Del) that scrap generated by dismantling used machinery is not excisable goods. It was also held in that case that the duty of excise is on new manufactured goods and dismantling of condemned machinery is not a manufacturing activity bringing into existence of any new goods. Revenue relied on the decision reported in 1993 (63) E.L.T. 27 (Bom.) in the case of Dhrunal Chhotalal Patel v. Union of India related to Customs Law. There, the matter related to whether scrap would fall within the m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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