"Scheise" is the anglicized spelling of the German "Scheiße" (with "ß" being the German letter representing the double "s" sound). Its English translation is "shit". It is often used (much like in English) as an expletive.
Any instance in which you would use the English word "shit" (again, especially as an expletive), one can substitute "scheise" or "scheiße". While not exactly scholarly references, one can hear the word used in film in the movies "Bourne Identity" (spoken by Bourne's German girlfriend) and "Austin Powers" (spoken by Dr. Evil).