2009 (11) TMI 391

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...., for the Appellant. Shri Sansar Chand, SDR, for the Respondent. [Order per : M. Veeraiyan, Member (T)]. - This is an appeal against the order of the Commissioner (Appeals) dated 28-11-2005. 2. Heard both sides. 3. The appellants had cleared and sold M.S. Scrap/M.S. Scrap (Turnings), generated by dismantling of worn out machinery, furnace, vessels, pipelines and structures of iron and ....

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....e of whether the Cenvat credit has been taken or not, the appellant has to pay duty and accordingly, confirmed the demand of duty of Rs. 21,71,820/- along with interest and imposed equal amount of penalty. The Commissioner (Appeals) upheld the order and it has also been observed by him that the Cenvat credit has been taken on the capital goods, which has been dismantled and sold as waste and scrap....

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....will not amount to manufacture of goods. He also relies upon the decision of the Hon'ble High Court of Rajasthan in the case of Hindustan Zinc Ltd. reported in 2008 (225) E.L.T. 50 (Rajasthan). 6. Ld. SDR draws our attention to the order of the Original Authority and submits that as a result of repair and maintenance of the plant, three types of waste and scrap of iron and steel were generated ....

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....ught out that waste and scrap has arisen during the course of manufacture of any iron and steel products was sought to be levied to duty under Heading No. 72.04. Further, it is clearly recorded that the waste and scrap in dispute has arisen out of capital goods, on which credit has not been taken. 8. Under these circumstances, we are in agreement with the claim of the appellant that the scrappi....