Customs, Excise and Gold Tribunal - Mumbai
Cadila Hospital Products Ltd. vs Commr. Of C. Ex. on 29 August, 2003
Equivalent citations: 2003(161)ELT1039(TRI-MUMBAI)
ORDER Gowri Shankar, Member (T)
1. The appeal is against that part of the Commissioner's order confirming the demand for duty on scrap manufactured and cleared by the appellant without payment of duty. The scrap arose in the manufacture of needles.
2. The contention of the Counsel for the appellant, that the benefit of the exemption contained in Entry 24 of the Schedule to Notification 53/88, has to be accepted. This entry totally exempts from duty waste bearing scrap of plastic classifiable in Heading 39.15 of the Tariff, if they arise from goods on which excise duty or additional duty of customs has been paid. The Commissioner himself records in Paragraph 4 of the order that the basis for the demand was that Modvat credit had been availed of the duty paid on the plastic from which the waste arose which is utilised in the manufacture of needles. The condition subject to which the exemption was available is therefore shown to have been satisfied. Therefore, duty was not demandable on this score and penalty not imposable.
3. The appeal is accordingly allowed and the impugned order set aside to that extent.