1997 (2) TMI 254

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....he appellants had received duty paid Copper and Aluminium Metal, had availed of Modvat credit and sought to clear the Copper waste without payment of central excise duty under Notification No. 172/84-C.E., dated 1-8-1984 as amended by Notification No. 78/86-C.E., dated 10-2-1986. With regard to waste of Aluminium they sought exemption under Notification No. 182/84-C.E., dated 1-8-1984 as amended by Notification No. 79/86-C.E., dated 10-2-1986. The Collector of Central Excise (Appeals), Bombay denied them the exemption on the ground that under Rule 57F(4)(b) of the Central Excise Rules, 1944, they were required to pay appropriate duty on copper and aluminium waste. 2. The appellants have prayed for decision on merits. 3. On b....

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....milarly, under Notification No. 182/84, the waste and scrap of Aluminium was exempted from duty if manufactured from duty paid Aluminium and products thereof. On introduction of the new Central Excise Tariff under Schedule to the Central Excise Tariff Act, 1985, consequential changes in Notification No. 172/84 and Notification No. 182/84 -C.E., were made under Notification No. 79/86-C.E., dated 10-2-1986 (effective from 28-2-1986). The appellants sought to clear the waste and scrap of Copper and Aluminium under Notification No. 172/84-C.E. and Notification No. 182/84-C.E., as amended by Notification No. 79/86-C.E. 6. The Revenue had taken a view that under Rule 57F(4)(a) of the Central Excise Rules, 1944, the waste and scrap was to ....

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....quent Notification No. 246/87-C.E., dated 2-11-1987 under which the Notification No. 172/84- C.E. and Notification No. 182/84-C.E. had been amended and a proviso had been added to the effect that the benefit of exemption under Notification No. 172/84-C.E. and Notification No. 182/84-C.E. was available only when no Credit had been taken on the inputs from which such scrap had been generated or an amount equivalent to the Credit taken on the inputs had been debited back. He had submitted that this amendment was clarificatory in nature and the intention of the Act was clear that if Credit had been taken in respect of the inputs then the waste and scrap generated from such inputs (in respect of which Credit had already been taken and which in a....