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of <h1>Tribunal Upholds Duty Rebate for Waste Clearance</h1> <h3>Commissioner of Central ExciseLudhiana Versus M/s. Amar Wheels P. Ltd.</h3> Commissioner of Central ExciseLudhiana Versus M/s. Amar Wheels P. Ltd. - TMI Issues: Appeal against duty rebate denial under Notification No. 41/2001 CE(NT) for waste clearance without payment of Central Excise duty.Analysis:The case involves the appeal by the Revenue against the order passed by the Commissioner (Appeals) regarding the denial of duty rebate for the clearance of waste without payment of Central Excise duty by the respondents. The respondents, engaged in manufacturing chain wheels and crank falling under Chapter 87 of Central Excise Tariff, claimed rebate under Notification No. 41/2001 CE(NT) for duty paid on raw materials. The Deputy Commissioner granted permission subject to conditions under the notification. However, during 4/2003 to 8/2003, the respondents cleared scrap without paying duty, leading to a show cause notice and subsequent confirmation of duty demand of Rs.5,93,111/- along with a penalty and interest under relevant sections of the Act.The respondents appealed the original adjudicating authority's order before the Commissioner (Appeals), who relied on a previous order in favor of the appellant. The Commissioner held that no duty was demandable from the appellant during the relevant period, citing the small-scale exemption and the value of waste and scrap cleared. The penalty imposed was set aside based on the exemption notification. The Revenue challenged the earlier order before the Tribunal, which was rejected. The Tribunal upheld the Commissioner's decision, emphasizing that there was no bar in the notification for availing benefits for waste and scrap under any other notification. The Tribunal noted that the value of clearances by the assessees was below the prescribed limit for the SSI exemption notification, and they were eligible for exemption under Notification No. 89/95-C.E. for waste and scrap arising during the manufacture of exempted goods.Ultimately, the Tribunal rejected the Revenue's appeal, as the issue had been decided in favor of the respondents based on previous decisions and upheld the impugned orders. The judgment was pronounced on 25.1.2012, confirming the respondents' entitlement to the duty rebate under Notification No. 41/2001 CE(NT) for the waste clearance without payment of Central Excise duty.
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