1999 (4) TMI 156

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.... for the Respondent. [Order per : G.R. Sharma, Member (T)]. -  This is an appeal against the confirmation of the demand of duty of Rs. 9,702/-, disallowance of Modvat credit amounting to Rs. 10,310.40 and imposition of penalty of Rs. 10,000/-. 2.  The facts of the case briefly stated are that the appellants are manufacturers of nickel scrap and other goods. It was noticed that t....

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....s cleared by them were exempt from whole of duty of excise. They referred to the decision of this Tribunal in the case of Rapicut Carbides Limited reported in 1989 (41) E.L.T. 259 stating that the Tribunal held that Notification No. 217/98 (sic) was covered by the Central Duties of Excise (Retrospective Exemption) Act, 1986. It was also contended that the waste and scrap which arose during the cou....

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....fication No. 217/86 which exempted the duty on these products which are used for captive consumption in the same factory was not applicable from 1-3-1986 and was only prospective i.e. applicable from 2-4-1986 onwards. We have perused the relevant chapter headings under Chapter 75. We are in agreement with the lower authorities that the nickel waste and scrap will be dutiable under chapter sub-head....

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.... of duty demanded." In view of the decision of the Tribunal, we hold that Notification No. 217/86 dated 2-4-1986 will be effective from 1-3-1986 in terms of Central Duties of Excise (Retrospective Exemption) Act, 1986, therefore on this allegation, we set aside the impugned order. 5. The second allegation is about disallowance of Modvat credit. In the case of the appellant, the final produ....