https://www.taxtmi.com/caselaws?id=115058 Waste and scrap of iron and steel were not shown to be excisable because the Department failed to establish that the scrap arose from the manufacturing process or from identifiable capital goods on which Modvat credit had been taken. The record indicated that the scrap was linked to construction activity rather than manufacture, and the show cause notice and order did not explain how the scrap was generated from modvatable inputs or from which capital goods it emerged. Rule 57S(2)(C) of the Central Excise Rules, 1944 was also not attracted, as there was no proof that capital goods sold as scrap were covered by that provision. The demand was not sustainable and the impugned order was set aside. en-us Mon, 13 Sep 2004 00:00:00 +0530 Wed, 23 May 2012 14:45:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=115058 Waste and scrap of iron and steel were not shown to be excisable because the Department failed to establish that the scrap arose from the manufacturing process or from identifiable capital goods on which Modvat credit had been taken. The record indicated that the scrap was linked to construction activity rather than manufacture, and the show cause notice and order did not explain how the scrap was generated from modvatable inputs or from which capital goods it emerged. Rule 57S(2)(C) of the Central Excise Rules, 1944 was also not attracted, as there was no proof that capital goods sold as scrap were covered by that provision. The demand was not sustainable and the impugned order was set aside. Case-Laws Central Excise Mon, 13 Sep 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=115058