No excise duty chargeable on scrap of pipes generated during repair/ maintenance of pipes

Cairn India Limited Vs Assistant Commissioner Central Excise Division (CESTAT Delhi) CESTAT Delhi held that pipes, used in manufacture/ production of oil needs repair/ replacement, are capital goods. Hence, no excise duty can be charged on the scrap of the pipes produced/ generated during the repair or maintenance of the pipes. Facts- The appellant claims to produce oil by drilling. In the process of manufacture/production of oil, plastic barrels in which the input chemicals are procured arise as scrap. Further, due to wear and tear, the pipes used in the production of oil have to be replaced ...