TaxTMI 
TaxTMI 
2015 (12) TMI 1598
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....ypes of scrap/waste of packing material remaining after removal of inputs therefrom and the scrap of grinding sludge and used/mixed oil and effluent water. 2. The Revenue has also filed miscellaneous applications for early hearing of the appeals. As the appeals are listed for hearing, the miscellaneous applications have become infructuous. Accordingly, the same are dismissed as infructuous. 2. The facts of the case are that the appellants are engaged in the manufacture of motor vehicles and parts thereof. The appellants procured various inputs for the purpose of manufacturing their final products which are supplied to the appellants by various vendors. The packing materials of the inputs such as drums, boxes, cartons, jars, ....
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....explanation to Section 2(d) introducing the concept of 'deemed marketability', there is no "manufacture". In that case, the excise duty cannot be levied even either of the two conditions are not met, the said scrip is not excisable. He further submitted that the issue has been settled in their favour vide C.B.E. & C. Circular No. B22/39/86-TRU, dated 5-9-1986 and Circular No. 721/37/2003-CX, dated 6-6-2003 and following the judicial pronouncements : i. CCE v. West Coast Industrial Gases Ltd. - 2003 (155) E.L.T. 11 (S.C.) ii. CCE, Bangalore v. Wipro Ltd. - 2002 (150) E.L.T. 249 (Tri.) maintained by the Hon'ble Supreme Court as reported at 2003 (154) E.L.T. A175 (S.C.). ....
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....nufacture such waste. In this regard, reliance is placed on the following decisions : i. CCE v. Tamil Nadu Petro Products Ltd. - 2007 (217) E.L.T. 520 (Tri.) ii. Indo Rama Synthetics (India) Ltd. v. CCE - 2005 (190) E.L.T. 431 (Tri.) iii. Vikrant Tyres Ltd. v. CCE - 2004 (171) E.L.T. 23 (Tri.) iv. CCE, Chennai v. Ashok Leyland Ltd. - 2008 (230) E.L.T. 470 (Tri.). 5. On the other hand, learned AR reiterated the findings in the impugned order. 6. Heard the parties and considered the submissions. 7. On consideration of the facts of the case, we find that the Central Excise duty of Rs. 5,37,06,889....
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....rust during storage and transportation. Scrap of Iron and Steel : Blank Covers Blank (Flat sheet) are covered with sheet packing covers. These covers are used to avoid damage & during storage and transportation. Scrap of Iron and Steel : MS Box strapping Coils corner covered with box strapping. These covers are used to avoid damage & rust during storage and transpiration. Mix scrap of cardboard, polythene, thermocol Supply of components from vendor come as packed with polythene, cardboard or thermocol to avoid damages. Supply also comes in carton boxes. Empty carton boxes are sold as scrap along with this item. Rusted/damaged/de-shaped/burn mild steel drums These drums are used for storage of various fluids. Once dam....
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....ste and scrap does not pass the test of manufacture, therefore, no duty is payable by the appellants. 9. For the demand of duty on account of emergence of scrap of grinding sludge and used/mixed scrap of effluent water, we find that the entire quantity of duty paid inputs have been used in relation to the manufacture of dutiable final product. For manufacture of required quantity of final product, the appellants used predetermined quantities of the inputs resulting in the emergence of the dutiable final product. Therefore, it is not possible for the appellant to manufacture the desired dutiable final product by using a lesser quantity of the inputs, so as to avoid the generation of the waste. Therefore the entire quantity of the dut....