https://www.taxtmi.com/caselaws?id=53456 Rule 3(4) of the Cenvat Credit Rules, 2002 did not apply to scrap generated during manufacture, because the cleared material was damaged copper tubes no longer in its original input form. Clearance of inputs as such was therefore not the correct basis for duty; any duty was payable only on the scrap itself. Since the demand proceeded on the wrong premise, the associated penalty was also unsustainable. The demand and penalty were set aside, and the matter was remitted to the original authority to determine any duty payable on the scrap and adjust the deposit accordingly. en-us Wed, 13 Oct 2004 00:00:00 +0530 Wed, 13 Oct 2010 14:16:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=53456 Rule 3(4) of the Cenvat Credit Rules, 2002 did not apply to scrap generated during manufacture, because the cleared material was damaged copper tubes no longer in its original input form. Clearance of inputs as such was therefore not the correct basis for duty; any duty was payable only on the scrap itself. Since the demand proceeded on the wrong premise, the associated penalty was also unsustainable. The demand and penalty were set aside, and the matter was remitted to the original authority to determine any duty payable on the scrap and adjust the deposit accordingly. Case-Laws Central Excise Wed, 13 Oct 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=53456