9911796707
TMI Blog2016 (3) TMI 1137X X X X Extracts X X X X X X X X Extracts X X X X ..... Held that: - It is an admitted fact on record that MS Scrap was generated from MS Plate, Angles, Channels etc. Since generation of scrap was not arisen out of any manufacturing process, in my view, the appellant is not required to pay any Central Excise duty on removal of those scrap items. I find from the available records that the Department has alleged contravention of Rule 4 and 8 of the Central Excise Rules, 2002. Since scrap is not manufactured by the appellant, the said provisions have no application, because the said Rules provide for payment of duty on removal of excisable goods from the factory. In the present case, Rule 14 of the Cenvat Credit Rules has not been invoked for demanding the irregularly availed cenvat credit on the M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cise duty. Non-payment of Central Excise duty on the MS Scrap was disputed by the Central Excise Department. The SCN issued in this regard was adjudicated vide order dated 21.03.2006, confirming the Central Excise duty along with interest and also imposed penalty on the appellant. In appeal, the Ld. Commissioner (Appeals) vide the impugned order has upheld confirmation of the duty demand. However, the penalties imposed in the adjudication order were reduced. Feeling aggrieved with the impugned order, the appellant is in appeal before this Tribunal. 2. Ms. Priyanka Goel, the Ld. Advocate appearing for the appellant submits that the scrap sold by the appellant were generated from the cenvated steel items used in repairing and maintenance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration of scrap was not arisen out of any manufacturing process, in my view, the appellant is not required to pay any Central Excise duty on removal of those scrap items. I find from the available records that the Department has alleged contravention of Rule 4 and 8 of the Central Excise Rules, 2002. Since scrap is not manufactured by the appellant, the said provisions have no application, because the said Rules provide for payment of duty on removal of excisable goods from the factory. 6. In the present case, Rule 14 of the Cenvat Credit Rules has not been invoked for demanding the irregularly availed cenvat credit on the M.S. Plates, Angles, Channels etc. The decision of this Tribunal in the case of Hindustan Zinc Ltd. (supra) cited by L ..... X X X X Extracts X X X X X X X X Extracts X X X X
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