By TIOL News Service

MUMBAI, JAN 05, 2016: THIS is an appeal filed in the year 2005 by the assessee against an Order-in-Appeal.

When the appeal came up for hearing recently, none appeared on behalf of the appellant. Quite possibly, the appellant is no longer in the business of manufacturing but has transformed into a service provider.

Be that as it may, the Bench noted that the issue is very straight forward and, therefore, proceeded to decide the case.

The Bench observed -

"2. A demand of duty of Rs.3,308/- has been confirmed, being the duty on value of goods, which are waste of packages and container cleared as scrap. The stand of the appellant is that there has been no manufacture of the waste & scrap and hence it is not dutiable. We find that the appellant manufacture biscuits. During the process of manufacture some wastage of packaging material occurs which is not useful and rejected. This being only charge against the appellant and there being no 'manufacture' we hold that the demand is not sustainable."

The impugned order was set aside and the appeal was allowed.

(See 2016-TIOL-41-CESTAT-MUM)