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TMI Blog2003 (4) TMI 148X X X X Extracts X X X X X X X X Extracts X X X X ..... dit of the duty paid on inputs and capital goods; that the duty has been demanded from them on waste sugar and waste paper cutting; that both these goods are not liable to duty as they are neither specified in Central Excise Tariff nor are manufactured product and have arisen during the course of manufacture of final products; that therefore, both these goods are non-excisable and not liable to duty; that the department has classified the waste sugar under Heading 1701.90 of the Schedule to the Central Excise Tariff Act, which is not correct as it is not sugar; that if at all it will be classifiable under Heading 23.01 of the Tariff and it carries nil rate of duty; that it is not marketable as only they are selling the same to one person. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red the submissions of both the sides. The Appellants are availing Modvat credit of the duty paid on sugar, paper and various chemicals, etc., under Rule 57A the manufacture of Biscuits and printed laminated wax paper. During the process of manufacture, waste sugar and waste paper are generated which are being sold by the Appellants. The sale of these waste products has not been denied by the Appellants. Once they are selling these products, it cannot be claimed by them that the said products are not marketable. Once the waste products obtained during the process of manufacture are being sold, the appropriate duty of excise would be payable by the Appellants under Rule 57F of the Central Excise Rules, 1944. Heading 1701 of the Tariff applie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e process of transformation. Regarding Gravura printing cylinders, the Commissioner (Appeals) has given his finding that the Appellants had availed of MODVAT credit under Rule 57Q on these cylinders, and had sent them to the supplier who was adjusting the price of used cylinders towards the cost of the new cylinder supplied by him. The Commissioner (Appeals) has, therefore, held that the provisions of Rule 57S(2)(c) are attracted and duty is payable by the Appellants. We do not find any reason to interfere with the finding of the Commissioner (Appeals) as the said sub-rule clearly provides that where capital goods are sold as waste and scrap, the manufacturer shall pay the duty leviable on such waste and scrap. We, therefore, uphold the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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