1998 (5) TMI 217

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....t credit had been taken under rule 57A for manufacture of their final product telecom cables. Cables scrap arising in the course of manufacture of such telecommunication cables is sent by the said cables manufacturer to the respondent for the purpose of separating the plastic scrap and copper scrap existent in such cables scrap. The copper scrap is returned to the cable manufacturer. But the plastic scrap is retained by the respondent himself. 3. A question has arisen about the dutiability of the plastic scrap retained by the respondent as aforesaid. They had filed a classification list claiming exemption of the same from duty in respect of the said plastic scrap under Serial No. 24 of the Table to Notification No. 53/88 C.E., dated....

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....ppeal and the submission made by the appellant during hearing. I find that in Sl. No. 24 of Notification. No. 53/88, no restriction on the question of composition as provided in Sl. No. 42 has been made and it embraces all sorts of plastic scrap for the purpose of extending full exemption provided such scrap is generated from goods on which appropriate duty has been paid I hold that the input contents of the cable scrap supplied by M/s. Hindustan Cables Ltd. to the appellant were duty paid or else they could not avail Modvat credit set-off which has been discussed by Asstt. Collector in his Order. I also find that in the ratio of CEGAT decisions reported in 1991 (53) E.L.T. 93 (T), in 1991 (56) E.L.T. 782 (T) the duty paid character of the ....

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....the impugned order. 6. Opposing the contentions ld. Advocate Shri N. Mookerjee draws our attention to the show cause notice gist of which already has been set out above. He submits in particular that the allegation of the revenue was that the cables scrap cannot be said to be duty paid inasmuch as it was alleged that the inputs which went into the manufacture of cables scrap has been taken into the Modvat credit scheme in the RG 23A account. Consequently it was held that such inputs were non-duty paid. It is on these allegations that the show cause notice was issued. But he submits that so far as this allegation is concerned, the lower appellate authority has dealt with the same on the basis of several authorities mentioned in the i....