9911796707
TMI Blog1995 (8) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... lead ash/residue and he has ordered the reversal of the Modvat Credit and re-crediting to the Government. He has also imposed a penalty of Rs. 2.00 lakhs on the appellants. Proceedings were initiated as a result of the follow-up action taken on a surprise check of the inputs which had been declared for the purpose of manufacture of lead sub-oxide. The inputs were also tested chemically and were not found to be lead scrap and waste as declared by the appellants and comprised of lead oxide 72.9% and lead 9.2% and ash and it was found not to have the characteristics of lead. These inputs were found to be falling under Chapter 26 of Central Excise Tariff which was not eligible for the grant of deemed Modvat Credit in terms of Notification issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involve mechanical working of metal". The metal scrap arising out of mechanical working of metal should be predominantly of the metal. The low content of the metal in the sample clearly indicates that the sample is not metal scrap/waste as declared by the assessee. In this connection, I have also referred to the invoices relating to the purchase of scrap". He pleaded that the appellants had bought the goods which had been described as old battery lead waste and battery waste and the appellant s understanding was that this could only be described as lead waste and scrap. He has pleaded that the appellants have not suppressed any fact and pleaded that the demand would be hit by limitation as the same has been raised for the period 5-4-1989 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as urged by both the sides. We observe that the inputs declared by the appellants is lead waste and scrap falling under Tariff Heading 7802.00. This Tariff Heading 7802.00 falls under Section XV of the Tariff which covers Base Metals and Articles of Base Metal. Under this Chapter under Note-6, it has been set out as under : 6. In this Section, the following expressions have the meanings hereby assigned to them : (a) Waste and Scrap : Metal waste and scrap from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons". It is clear from this that, what is covered under Chapter 7802.00 as waste and scrap of lead is the one which comprises mostly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of lead sub-oxide. We observe that the process of manufacture of lead sub-oxide out of the lead metal waste would be different from that out of lead oxide. The manufacturing process being chemical in nature has to comprise of certain steps depending upon the inputs received. It is not the case of the appellants that in respect of the inputs received namely battery waste having over 72% lead oxide the process of manufacture would be the same for the manufacture of lead sub-oxide as out of lead metal waste and scrap. Chemically this would not be feasible. The appellant s plea that they did not know at any time as to what was the material supplied to them, cannot be accepted. The appellants were manufacturing a chemical product and they h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
