TaxTMI 
TaxTMI 
1997 (1) TMI 273
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....ed the written and oral submissions. As per the classification list No. 247/86 which is filed with the appeal petition, the appellants have claimed the benefit of Notification No. 54/86 . The appellants are prima facie ineligible to claim the benefit under Notification No. 54/86 because they are availing Modvat credit on the inputs viz. steel sheets covered by heading Nos. 72.11 and 72.12. In terms of proviso (i), the benefit of duty free clearances of waste and scrap is out of question if it was generated from sheets on which Modvat credit was already availed. Further, the benefit under proviso clause (ii) will also not be available as the waste is generated from one of the product covered by clause (i). The appellants claim to duty free ....
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....sification list of the appellants, the steel sheets which were brought for manufacture of the final product were specifically covered by heading Nos. 7211 and 7212 and there was no question of going to provision II and that as the credit had been taken the removal at nil rate of duty was not proper and the goods were required to be cleared on payment of proper excise duty and that view taken by the Collector of Central Excise (Appeals), Bombay was correct. 4.  We have carefully considered the matter. Under the Notification No. 54/86-C.E., dated 10-2-1986, the waste and scrap which was classifiable under sub-heading Nos. 7203.10 and 7203.20 of the New Central Excise Tariff were eligible to nil rate of duty provided that the conditions ....