https://www.taxtmi.com/caselaws?id=3719 Waste and scrap arising from capital goods is not independently liable to excise duty; any duty consequence depends on satisfaction of the Modvat reversal conditions under the relevant rules. The court held that duty on gun metal scrap could not be demanded where there was no proof that Modvat credit had been availed on the capital goods, the machinery pre-dated the credit scheme, and the capital goods themselves were not shown to have been sold as scrap. On those facts, the statutory preconditions for levy were absent, so the demand was unsustainable. en-us Thu, 09 Nov 2006 00:00:00 +0530 Fri, 25 Apr 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3719 Waste and scrap arising from capital goods is not independently liable to excise duty; any duty consequence depends on satisfaction of the Modvat reversal conditions under the relevant rules. The court held that duty on gun metal scrap could not be demanded where there was no proof that Modvat credit had been availed on the capital goods, the machinery pre-dated the credit scheme, and the capital goods themselves were not shown to have been sold as scrap. On those facts, the statutory preconditions for levy were absent, so the demand was unsustainable. Case-Laws Central Excise Thu, 09 Nov 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3719