9911796707
TMI Blog2016 (8) TMI 938X X X X Extracts X X X X X X X X Extracts X X X X ..... nus to establish that such waste and scrap was generated out of the imported raw material is clearly on Revenue. Also in view of the decision of Hon'ble Apex court in the case of Uniworth Textiles Ltd. [2013 (1) TMI 616 - SUPREME COURT], the Supreme Court held that mere non-payment to duty is not equivalent to collusion or willful misstatement or suppression of facts. The main body of the Section, in fact, contemplates ordinary default in payment of duties and leaves cases of collusion or wilful mis-statement or suppression of facts, a smaller, specific and more serious niche, to the proviso. Therefore, something more must be shown to construe the acts of the appellant as fit for the applicability of the proviso. Hence, the demand is un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be said to have arisen in the course of manufacture or production of the final products of the appellant. Similarly, waste and scrap of electrical fittings/ pipe fittings accessories, tube light choke, comber spares mechanical parts of ring frame etc. are also not generated during the course of production of processing. (ii) In the SCN, no classification of such scrap is indicated which is necessary for arriving at the rate of duty. There was no willful misstatement or suppression of facts and there is no evidence in the SCN on the basis of which this allegation can be sustained. (iii) The Ld. Advocate also cited the judgment in the case of Commissioner of Central Excise vs West Coast Industries Gases Ltd. 2003 (155) ELT 11(S.C.), Al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leviable on such drums/ barrels/ containers cleared from the factory. Although, the said judgment was given with reference to Rule 57F of the Central Excise Rules 1944, the ratio thereof is clearly applicable to the present case also. The contention of the Ld. DR that such waste and scrap was of packing material which is durable and returnable in nature, suffice to say that after such packing material turned into waste and scrap it could not have remained durable and returnable. Similarly, the waste and scrap of electrical fittings/ pipe fittings accessories tubelight choke, comber spares, mechanical parts of ring frame etc. cannot be said to have arisen as a result of processes of manufacture on the raw material received duty free under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein he has reiterated that no separated records were maintained for indigenous as well as imported goods, and the goods were cleared without knowledge of department as they have considered them to be non manufactured goods and attracts no duty was on it, hence from above they contended that the duty was on it, hence from above they contended that the duty was not paid willfully by suppressing the facts. It is evident from the above-quoted paras that the appellant had all along held that it considered the impugned waste and scrap as not subject to duty. Further the SCN itself concedes that the Revenue was not confirmed whether such waste and scrap was out of indigenous or imported material and therefore, it is to be treated as gene ..... X X X X Extracts X X X X X X X X Extracts X X X X
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