1999 (7) TMI 307 - AT - Central Excise

Summary

Issues involved:
Whether the benefit of Notification No. 171/88-C.E., dated 30-5-1988 is available to the waste and scrap of steel.

Analysis:

1. Appellant's Argument:
The Appellant, M/s. Amar Steel Container Corporation, argues that the waste and scrap of steel should be eligible for the benefit of Notification No. 171/88-C.E. The waste and scrap arising in their factory falls under clause (ii) of the conditions specified in the notification. They rely on a previous decision where a similar issue was decided in favor of the assessee.

2. Respondent's Argument:
The Respondent, represented by the ld. DR, contends that the steel sheets used by the appellants are covered under clause (i) of the notification as they are manufacturing steel containers using Modvat credit under Rule 57A of the Central Excise Rules. The Respondent argues that the waste and scrap arising from metal containers are not eligible for the benefit as per the conditions specified.

3. Judgment:
The Tribunal examined the conditions specified in Sl. No. 3 of Notification No. 171/88. It was observed that all goods covered by subheading 72, except specific exclusions, are mentioned in clause (i) of the condition. Since steel sheets are classifiable under chapter 72 of the schedule, the waste and scrap arising during the manufacture of metal containers out of the sheets are not considered to have arisen from the containers themselves. Additionally, the condition regarding the non-availment of duty credit under Rule 56A or 57A was not met as Modvat credit had been availed of. Consequently, the benefit of the notification was deemed unavailable to the waste and scrap in this case, leading to the rejection of the appeal.

This detailed analysis highlights the arguments presented by both parties and the Tribunal's reasoning in interpreting the conditions of the notification to determine the eligibility of the waste and scrap of steel for the benefit under Notification No. 171/88-C.E.