Ahmedabad Steelcraft Ltd. Vs. Commissioner of Central Excise - Court Judgment

Excerpt:

2. the issue involved in this appeal is whether waste and scrap generated during the month of august, 1997 is entitled for the benefit of notification no. 49/97-c.e., dated 1-8-1997.3. the scheme of compound levy under section 3a of the central excise act was introduced with effect from 1-8-1997 and subsequently the date of start of the scheme was postponed to 1-9-97. the notification in question i.e. 49/97-c.e., dated 1-8-97 provides exemption to waste and scrap when such waste and scrap arising in the course of manufacture of products which paid duty under section 3a of the central excise act. in the present case, admitted facts are that in the month of august, 97, scheme of compound levy was not in operation. therefore, the question of payment of duty under section 3a of the central excise act could not arise.4. in these circumstances, waste and scrap arising during the month of august, 97 is not entitled for the benefit of notification no.49/97-ce.

Judgment:

2. The issue involved in this appeal is whether waste and scrap generated during the month of August, 1997 is entitled for the benefit of Notification No. 49/97-C.E., dated 1-8-1997.

3. The Scheme of Compound Levy under Section 3A of the Central Excise Act was introduced with effect from 1-8-1997 and subsequently the date of start of the Scheme was postponed to 1-9-97. The notification in question i.e. 49/97-C.E., dated 1-8-97 provides exemption to waste and scrap when such waste and scrap arising in the course of manufacture of products which paid duty under Section 3A of the Central Excise Act. In the present case, admitted facts are that in the month of August, 97, Scheme of Compound Levy was not in operation. Therefore, the question of payment of duty under Section 3A of the Central Excise Act could not arise.

4. In these circumstances, waste and scrap arising during the month of August, 97 is not entitled for the benefit of Notification No.49/97-CE.