https://www.taxtmi.com/caselaws?id=353 Scrap that is merely recovered packing material, including waste paper, drums and carbuoys cleared as scrap without any manufacturing process, was held not dutiable and the demand was set aside. Proportionate Modvat credit reversal was upheld because the stock discrepancy between records supported the finding that credit had been taken on inputs not physically available. Credit on capital goods received before 1-3-1997 was rejected under the applicable rule, since later use did not revive admissibility. Duty was payable on samples removed after manufacture for quality testing. Penalty on the company was partly sustained with reduced quantum, Rule 173Q penalty was deleted, and penalty on the executives was upheld. en-us Fri, 18 Nov 2005 00:00:00 +0530 Sun, 13 Apr 2008 14:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=353 Scrap that is merely recovered packing material, including waste paper, drums and carbuoys cleared as scrap without any manufacturing process, was held not dutiable and the demand was set aside. Proportionate Modvat credit reversal was upheld because the stock discrepancy between records supported the finding that credit had been taken on inputs not physically available. Credit on capital goods received before 1-3-1997 was rejected under the applicable rule, since later use did not revive admissibility. Duty was payable on samples removed after manufacture for quality testing. Penalty on the company was partly sustained with reduced quantum, Rule 173Q penalty was deleted, and penalty on the executives was upheld. Case-Laws Central Excise Fri, 18 Nov 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=353