9911796707
|
Home
Issues Involved:
The issues involved in this case are the classification of goods manufactured by a company under the Central Excise Tariff Act, 1985, and the duty liability on scrap generated during the manufacturing process. Classification of Goods: The Excise Department sought to recover duty from the Railways on components manufactured by their Diesel Component Works, Patiala, used in repairing diesel locomotives. The company contended that the goods were classifiable under Chapter 86 and exempt from duty under Notification No. 197/87-CE. The Commissioner, however, classified the parts under Chapter 84 or 85, leading to duty imposition. The Tribunal held that the components were solely classifiable under Chapter 86, as they were essential parts of locomotives, not machines, and thus exempt from duty. Duty Liability on Scrap: Two types of scrap were generated at the company's factory, with metal waste from manufacturing acknowledged as dutiable. The dispute arose regarding scrap from dismantling old locomotives. The Commissioner, relying on a Calcutta High Court decision, imposed duty on this scrap. However, the Tribunal found the decision inapplicable, as it concerned waste from ships, not locomotives. The duty on scrap was modified, with only metal waste from manufacturing deemed dutiable. The matter was remitted to the Commissioner for reassessment. In conclusion, the Tribunal quashed the original order imposing duty and penalty on the Railways, directing a reassessment of duty on metal waste generated during manufacturing.
|
