2001 (11) TMI 84

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....r : Ashutosh Mohunta, J.]. - The Revenue has filed the present reference petition against the order of the Custom, Excise and Gold (Control) Appellate Tribunal (for short, 'the CEGAT') dated October 17, 2000 vide which the appeal of the Revenue was dismissed. 2.Briefly, the facts are that the respondent-M/s. Swaraj Automotives Ltd., Nabha, is engaged in the manufacture of PU Foam falling under ....

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....der dated November 3, 1998. As a result of the reduction of the Modvat credit, the respondent was directed to pay an amount of Rs. 2,13,424.17. A penalty of Rs. 25,000/- was also imposed. The respondent filed an appeal before the Commissioner (Appeals), Central Excise & Customs, Chandigarh, who vide order dated January 20, 2000 allowed the appeal and set aside the order of the adjudicating authori....

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....the present case :- "(i)       Whether the learned Tribunal was correct in holding that the waste arises in the manufacture of seats and not in the manufacture of PU Foam articles in view of the evidence cited by the petitioner ? (ii)        Whether the learned Tribunal was correct in holding that there is no revenue implicatio....

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....ised by the learned Counsel is wholly devoid of merit. The respondent had paid Excise Duty on the PU Foam and took Modvat credit of the same. If the respondent had paid duty on the actual weight, i.e., by excluding the weight of waste and scrap, then the duty also would have been less. In the present case, the respondent had paid duty on the actual weight of the PU Foam articles and, therefore, it....