2024 (3) TMI 912

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....proceeding by the Commissioner of Central Excise, Customs & Service Tax, Aurangabad that was initiated against the Respondent-Assesse demanding Central Excise duty against non-reversal of credits availed in respect of exempted services, alongwith interest and proportionate penalty is assailed by the Appellant- Department in this appeal. 2. Facts of the case, in a nutshell, is that Respondent M/s Skoda Auto Volkswagen India Pvt. Ltd. is engaged in manufacturing of excisable goods mainly motor vehicle and parts. During the course of manufacturing, waste and scrap were generated which were disposed of by following two processes. For waste and scrap of packing materials viz. corrugated boxes, cartoons, MS scrap, plastic, industrial refuse et....

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....nst which proportional reversal was not done for which the Appellant is liable to pay the duty, interest and penalty and as the order passed by the Commissioner resulted in dropping of the proceedings, Department has preferred the appeal in the present Forum. He pointed out that the Committee of Commissioners placed reliance on the judgment of this Tribunal passed in the case of Agauta Sugar & Chemicals Vs. Commissioner of Central Excise, Noida reported in 2010 (19) S.T.R.849 (Tri.-LB)[01.09.2010] of the Hon'ble Supreme Court passed in the case of Collector of Central  Excise, Calcutta Vs. Pradyumna Steel Ltd. reported in 1996 (82) E.L.T. 441 (S.C.) [19.01.1996] and Commissioner of Central Excise V.s West Coast Industrial Gases Ltd....

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....how-cause notice being foundation of Department's case, it cannot take a contrary stand beyond the said notice and it has got no justification in agitating issues before the Tribunal, which were not agitated before the lower Authorities. 4.1 Further, in distinguishing the judgment relied upon by the Appellant-Department, he pointed out that West Coast Industrial Gases Ltd. decision was wrongly applied by the Appellant, since basing on the same decision including in the case of Maruti Suzuki India Ltd. Vs. Commissioner of Central Excise, Delhi-III reported in 2016 (339) E.L.T. 287 (Tri.-Chan) [16.12.2015], findings are given by the Hon'ble Court and Tribunal that Central Excise duty is not payable on waste and scrap of packing materials o....