2016 (8) TMI 302

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.... Shri Kamal Puggal, AC (AR) for Respondent ORDER The appellant, M/s Indo Count Industries Ltd., an EOU, purchased Heavy Duty Furnace Oil for use as fuel for their captive power plant. Out of these fuels, some quantity of waste/remnant was deposited at the bottom of the tank and was known as Furnace Oil Sludge. The appellant sold the F.O. Sludge without payment of duty. A demand notice was is....

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....waste/ scrap but are the remnants of the furnace oil. He has confirmed the demand holding that the F.O. sludge is nothing but the furnace oil. He also relied on the following decisions: - (a) Clancey Precision Components Pvt. Ltd. - 2007 (216) ELT 242 (Tri) (b) Hanil Era Textiles Ltd. - 2004 (171) ELT 33 (Tri-Mum) affirmed by Hon'ble Supreme Court reported in 2005 (180) ELT A....

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....spute. Para 7 of Notification No.  53/97 dated 3.6.97 lays down the manner as to how the articles (including rejects, waste scrap material arising during the course of manufacture) out of duty free imported goods are to be disposed off for home consumption, if not exported out of India. Since the furnace oil sludge, under dispute, is a waste arising before furnace oil is issued for consumptio....