2017 (9) TMI 1112

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....Per: Ashok K. Arya M/s J.B. Mangharam Foods Pvt. Ltd. is in appeal against the Order-in-Appeal No.468/2010 dated 24.12.2010 whereunder demand of duty of Central Excise along with interest and penalty has been sustained. 2. The brief facts are that: (i) The appellant is engaged in the manufacture of biscuits falling under Chapter 19 of Central Excise Tariff. (ii) During the course of au....

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.... is covered by the Tribunal's decision in the appellant's own case vide Final Order No.55890/2016 dated 9.11.2016 (Appeal No.3357/2010-SM), whereunder the Tribunal observes as under : "6. I find that as regards the packing materials removed as waste and scrap by the appellant, the Hon'ble Supreme Court in the case of West Coast Industrial Gases Ltd. (supra) have held that such waste cannot be t....

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....t credit. Thus, duty liability cannot be fastened on removal of those goods as waste and scrap. 8. With regard to plastic scrap, the Ld. Advocate states that the same were generated during the course of manufacture/ packing of the final product. Since, initial procurement of plastic were not input as such and were not generated during the course of manufacture of the final product, on removal o....

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....ed as scrap, no demand shall be confirmed against the appellant on removal of those goods. 10. The lower authorities have invoked Section 11AC of the Central Excise Act, 1944 for imposition of penalty. Since, the information were gathered by the department from the balance sheet of the appellant, no malafide can be attributed, justifying imposition of penalty under Section 11AC ibid. Therefore,....