2017 (9) TMI 1112

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ase of the duty liability on SS Steel, MS, aluminium scrap, the matter is remanded to the original adjudicating authority to verify the fact that no Cenvat credit on the machinery or iron and steel removed as scrap were taken by the appellant and thereafter decide the matter afresh after giving opportunity of personal hearing to the appellant. Appeal allowed in part and part matter on remand.
Mr. Ashok K. Arya, Member (Technical) Shri R. Krishnan, Advocate - for the appellant Shri Ubhav Sengraj, D.R. - for the respondent ORDER Per: Ashok K. Arya M/s J.B. Mangharam Foods Pvt. Ltd. is in appeal against the Order-in-Appeal No.468/2010 dated 24.12.2010 whereunder demand of duty of Central Excise along with interest and penalty has b .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... I am of the view that duty demand on the packing material is liable to be set aside. 7. With regard to oily cotton canvas, which were removed in the form of scrap, cannot be considered as input for the appellant, who manufactures biscuits. Thus, I am of the firm opinion that said goods are not the input for the appellant. Thus, removal of such goods as scrap will not attract payment of central excise duty/ reversal of cenvat credit. Similar is the case with regard to the wooden scrap namely, doors, windows, iron rods etc., which have no relation with the manufacture of the final product and obviously there was no scope on the part of the appellant to avail the cenvat credit. Thus, duty liability cannot be fastened on removal of those goo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n 11AC ibid. Therefore, the penalty imposed in the impugned order is set aside." 4.1 In view of the above cited observations of the Tribunal in the appellant's own case (supra), no duty liability can be sustained in case of waste material, wooden scrap/ plastic scrap oily cotton canvas scrap, the details of which are given in the table annexed with the appellant's reply to the Show Cause Notice. 4.2 However, in case of the duty liability on SS Steel, MS, aluminium scrap, the matter is remanded to the original adjudicating authority to verify the fact that no Cenvat credit on the machinery or iron and steel removed as scrap were taken by the appellant and thereafter decide the matter afresh after giving opportunity of personal hearing to t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X