Case Law Details
Orient Glaze Pvt Limited Vs Commissioner of Central Excise & ST (CESTAT Ahmedabad)
The case of Orient Glaze Pvt Limited vs. Commissioner of Central Excise & ST (CESTAT Ahmedabad) revolves around the liability of paying duty on waste and scrap of fire bricks removed from kilns during a specific period. The appellant argues that such waste is not subject to duty, citing relevant rules and precedents.
The appellant contends that once fire bricks are used in the kiln and become waste or scrap, they are no longer usable and are discarded outside the factory. Therefore, according to Rule 3(5A) of the Cenvat Credit Rules, 2004, duty payment is not required.
They cite the judgment in the case of Birla Corporation, asserting its applicability due to the similarity of provisions between Rule 3(5A) and Rule 57S(2)(c) of the Central Excise Rules, 1944. This judgment supports the appellant’s argument that waste and scrap of capital goods are not subject to duty.
On the contrary, the respondent reiterates the findings of the impugned order, advocating for the duty payment on waste and scrap as per the rules.
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