9911796707
TMI Blog1996 (2) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... that the learned original authority neither issued any show cause notice nor elisted any information as to the nature of the goods that the appellants were to get and the process of manufacture of the same. On appeal, the learned Collector (Appeals) has also held that Chapter Heading 7204 does not cover the article which would be converted into another article by re-rolling without it being necessary to remelt them into a metal first. 2. The learned Advocate for the appellants pleaded that the appellants were going to get materials which were to be re-rolled and since the material to be brought was in the nature of scrap, they had given the Tariff Heading for the material as 7204.90. He has pleaded that the appellants were getting waste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the kind of scrap that is to be received and to which use it is to be put in the appellants factory i.e. whether for re-rolling or not. All that the appellants have to show is that the input material is to be used in or in relation to the manufacture of notified finished product. It is not the case of the Revenue that Tariff Heading 7204 is not covered under the notification issued under Rule 57A. The only reason for keeping the appellants out of the benefit is that when they are only re-rollers, the input falling under Tariff Heading 7204.90 which could be considered only as fit for melting could not be used by the appellants. I observe as it is the Tariff description under Tariff Heading 7204 reads as under: Ferrous waste and scrap : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aste and scrap is usually prepared by means of the following processes, in order to adapt it to the dimensions and qualities required by the users : (a) Shearing or flame-cutting of heavy and long pieces. (b) Compression into bales, particularly in the case of light scrap, using for example a hydraulic press. (c) Fragmentation (shredding) of motor vehicle bodies and other light scrap, followed by separation (which may be magnetic) with a view to obtaining a high density product that is fairly clean. (d) Crushing and agglomeration into briquettes of iron and steel filings and turnings. (e) Breaking up of old iron atricles. Waste and scrap is generally used for the recovery of metal by remelting or for the manufacture of chemicals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product. (iii) Whether other requirements of MODVAT Scheme as set out in the rules are complied with. In the present case both the inputs and the finished products are admittedly notified under Rule 57A. The claim of the appellant is that they are going to use the material received and which has been described by them as re-rollable scrap materials as waste and scrap for the manufacture of the notified finished product. Therefore, the classification of the material that the appellants are going to receive notwithstanding at the supplier s end the eligibility to MODVAT will have to be determined at the appellant s end based on their satisfying the authorities about its use in or in relation to the manufacture of the notified finished pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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