2002 (12) TMI 447

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.... [Order]. - The appellants are manufacturers of Tyres, Tubes and Flaps. They availed credit of duty paid goods used for the manufacture of final products. It was noticed that they had cleared empty barrels and the packing cases from the factory in which the said inputs were received without payment of duty on such removals. It was alleged that the said items would not fall within the ambit of i....

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....missioner of Central Excise, is legally correct for the reason that the Department and the Board have already issued instructions vide their letter M.F. (DR.) No. B22/39/86-TRU, dated 5-9-1986 wherein they have clarified that duty need not be paid on empty containers. This has been reiterated by the Board by their letter F. No. 267/135/96-CX. 8, dated 23-3-99. In view of that, the Order passed by ....

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....267/135/96-CX. 8, dated 19-7-99. The Board's letter F.No. 267/135/98-CX. 8, dated 19-7-99 withdrawing their earlier letter F.No. 267/135/96-CX. 8, dated 23-3-99 will have a prospective effect since any clarification issued cannot have a retrospective effect. The demand in this case pertains to a period (February, 1998 to July, 1998) which is earlier to Board's withdrawal letter dated 19-7-99 and t....

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....p;     From the order of the lower authorities, it is not understood and clear where they have classified the subject 'scrap' under Central Excise Tariff Act. Since the used goods, which were barrels and plywood boxes in this case, are old and used goods, they cannot be classifiable as manufactured goods under the Tariff, until the heading says so. While these barrels and plywo....