Per V.K. Agrawal : M/s. Parle Biscuits Ltd. have filed this Appeal being aggrieved by the Order in Appeal No. 236/2002 dated 16.7.02 passed by the Commissioner of Customs, (Appeals).

2. Shri Harbans Singh, learned Advocate, submitted that the appellants manufactured Biscuits, flavour mix and printed laminated waxed paper and availed of the MODVAT credit of the duty paid on inputs and capital goods; that the duty has been demanded from them on waste sugar and waste paper cutting; that both these goods are not liable to duty as they are neither specified in Central Excise Tariff nor are manufactured product and have arisen during the course of manufacture of final products; that therefore, both these goods are non-excisable and not liable to duty; that the department has classified the waste sugar under Heading 1701.90 of the schedule to the Central Excise Tariff Act, which is not correct as it is not sugar; that if at all it will be classifiable under Heading 23.01 of the tariff and it carries nil rate of duty; that it is not marketable as only they are selling the same to one person. He relied upon the decision in the case of Commissioner of Central Excise Hyderabad vs. Nizam S