Tribunal rules in favor of respondent on duty demand appeal based on marketability of waste.

The Tribunal dismissed the revenue's appeal against the duty demand, interest, and penalty confirmed by the Commissioner (Appeals) regarding the clearance of waste generated during the manufacturing process. The decision was based on the precedent set in the respondent's earlier case, where the Tribunal had ruled that the waste in question was not marketable, thus resolving the issue in favor of the respondent.

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Issues: Whether waste generated during the manufacture of biscuits and cakes, cleared to the job-work principal, attracted reversal of 10% of the value under rule 6(3)(b) of the Cenvat Credit Rules, 2004.

Analysis: The Tribunal noted that the dispute had already been decided in the assessee's own case for an earlier period on the same issue. It relied on the earlier finding that the waste arising during the manufacturing process was not marketable. On that basis, the issue was treated as no longer open and the demand founded on treating such waste as exempted goods was found unsustainable.

Conclusion: The demand for reversal under rule 6(3)(b) of the Cenvat Credit Rules, 2004 was not maintainable and the revenue's appeal failed.

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