2003 (10) TMI 155

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..... filed by M/s. K.M. Sugar Mills Ltd., the issue involved is whether waste and scrap has arisen out of machinery in respect of which Modvat credit of the duty has been availed of by them. 2. Shri S.P. Ojha, learned Consultant, submitted that the appellants manufacture sugar and molasses; that the Commissioner (Appeals) under the impugned order has confirmed the demand of duty and penalty in respec .....

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..... ubstantiated presumption and unwarranted assumption; that it has been held by the Supreme Court in the case of Oudh Sugar Mills Ltd. v. Union of India - 1978 (2) E.L.T. J172 that the findings based on such show cause notice are without any tangible evidence and are based only on inferences involving unwarranted assumptions. 3. Countering the arguments, the learned SDR reiterated the findings as c .....

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..... the waste and scrap had arisen out of such capital goods. We agree with the learned Consultant that the question put up to the Finance Manager and the answer given by him does not indicate at all that the waste and scrap in question had been generated out of the capital goods in respect of which Modvat credit was availed of. In view of this, the demand of duty is not sustainable as there is no ev .....

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