2016 (3) TMI 261

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uts consumed during the manufacturing of final products on which they discharged appropriate duty. During the period 1998-99 to 1999-2000, waste and scrap generated during the course of manufacture, which the respondent cleared for job-work under Notification 214/86 without payment of duty and received back the said waste and scrap, converted as semi-finished products. A show cause notice was issued to the respondent asking them to show cause as to why the duty liability be not demanded from them, as provisions of Notification 214/86 would apply only to the inputs and semi finished goods which can be sent for job-work. Respondent contested the matter before the adjudicating authority. The adjudicating authority, after following due process ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... plastics is neither raw material nor semi-finished goods. 3.4. Since the conditions stipulated in Notification do not get fulfilled, hence the judgment of the larger bench in the case of Wyeth Laboratories (supra) in incorrectly applied; 3.5. That the judgment of the Tribunal in the case of Narmada Plastics (P) Ltd. vs. Commissioner of Central Excise 2004 (178) ELT 806 will be applicable wherein it was held waste and scrap removal of, for reprocessing and return, erstwhile Rule 57F is not applicable. 3.6. Judgment of the Tribunal in the case of Techno Cable Pvt. Ltd. vs. Commissioner of Central Excise 2001 (136) ELT 721 will be applicable wherein identical issue has been decided. 4. None appeared on behalf of the respondent. We....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... or in relation to the manufacture of final products on which duty of excise is leviable whether in whole or in part. In the case in hand, it is undisputed that the plastic waste and scrap which gets generated during the manufacture of final products are sent to job-worker and received back as granules which are further consumed in the manufacture of final products. On the face of such factual matrix, in our view, both the lower authorities were correct in holding that no liability arise on the respondent-assessee. 8. Further, the benefit of Notification 214/86 should be applicable to the inputs on which cenvat credit is availed but at the same time the assessee kept the department informed by following the procedure to indicate that tha....