2007 (5) TMI 420

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....hri R.K. Verma, Advocate, for the Respondent. [Order]. - Heard both sides. The appellant filed this appeal against the impugned order whereby the demand of Rs. 64,647/- was confirmed and penalty of Rs. 25,000/- was imposed on the ground that the appellant cleared waste and scrap of old and used capital goods without payment of duty. 2. The contention of appellant is that the scrap wa....

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.... I find that in this case the appellants are not clearing capital goods as such. They are clearing old and used parts of the capital goods such as MS sheets, MS rolled channels, old electronic goods etc. During the relevant period, there was no provision under the Cenvat Credit Rules which makes waste and scrap of capital goods liable for duty. A new rule was introduced in the year 2005 which....