2017 (11) TMI 1434

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....the Respondent ORDER The department has filed the above appeal aggrieved by the order passed by Commissioner (Appeals) who has set aside the duty, demand of interest and the penalties. 2.   The respondents are manufacturers of paper board and are registered with the Central Excise Department. On verification of trial balance of the respondents, for the years 2005 - 06 and 2006 - 07, i....

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.... to be cleared from the factory only on payment of duty in tune with Rule 8 of Central Excise Rules, 2002. In similar manner, the waste and scrap of capital goods which arise out of replacement of old parts if cleared on payment of duty under Rule 3(5A) of CENVAT Credit Rules, 2004.. Since it is clearly established that the waste and scrap has been generated during the course of modernization of c....

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....s not stated the classification of the disputed product so as to demand duty. Rule 3(5A) of CENVAT Credit Rules, 2004 can be applied only in respect of capital goods on which credit has been availed. That the said issue has been covered by the judgment in the case of Grasim Industries Ltd. Vs. Union of India - 2011 (273) ELT 10 (SC). 5.   Heard both sides. 6.   The issue is w....