9911796707
TMI Blog1997 (5) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... containers has been stated by the appellant in a letter to the Assistant Collector of Central Excise. The appellant melts the ingots, converts them into slabs, rolls them into sheets which are converted into circles. These circles are converted into containers which are sold in the market. The appellant pays duty on the containers manufactured by it in regular course. In the process of manufacturing containers, waste products such as aluminium scrap also come into existence. 2. The Central Excise Authority called upon the appellant to pay duty on the scrap manufactured by it. The appellant was compelled to pay duty on the value of the scrap at the rate of 40 per cent under Tariff Item 27(a)(i) of the Central Excise Tariff. 3. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods for sale, including collapsible tubes, casks, drums, cans, boxes, gas cylinders and pressure containers whether in assembled or unassembled condition, and containers known commercially as flattened or folded containers. Explanation : II - In this Item, the expression "Aluminium" shall include any alloy in which aluminium predominates by weight over each of the other metals. 4. The appellant's case is that `aluminium scrap' cannot be described as `aluminium in any crude form'. Aluminium scraps are not really in crude form. In fact, T.I. 27(a)(i) makes it clear that it is only the commodities known in the market like ingots, bars, blocks, slabs, billets, shots and pellets, which can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rm or size not otherwise specified'. There is no dispute that the appellant manufactures circles which have been specifically included in T.I. 27(b) and not T.I. 27(a). `Circles' have not been included in the Tariff Description in T.I. 27(a)(i). That means `circles' have not been treated as `aluminium in any crude form' but `Aluminium Manufactures'. The assessee manufactures the circles and thereafter aluminium containers out of these circles. The scraps are generated while converting circles which are not `aluminium in crude form' into containers which are finished goods. If anything is made out of the circles, whether as end-product or by-product, it cannot be treated as the metal itself in crude form. The scraps that arise out of the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (ii) & castings not otherwise specified. -do- (aa) Waste and Scrap. -do- (b) ........... (c) ........... (d) ........... (e) ........... (f) ........... EXPLANATION I ........... EXPLANATION II .......... EXPLANATION III - "Waste and Scrap" means waste and scrap of aluminium fit only for the recovery of metal or for use in the manufacture of chemicals, but does not include sludge, dross, scalings, skimmings, ash and other residuals. 11. The legislature recognised that `Waste and Scrap' could not be brought to tax as aluminium in crude form. If `Waste and Scrap' was alread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uded in `aluminium in any crude form'. 14. Similarly, in the T.I. 18 dealing with man-made fibres, other than mineral fibres, man-made filament yarns, cellulosic spun yarn, `Non-cellulosic wastes, all sorts' have been specifically included as sub-item (4) of T.I. 18. Sub-item (4) has been explained to include only wastes arising in, or in relation to, the manufacture of man-made fibres (other than mineral fibres) and man-made filament yarns. 15. The obvious legislative intent was not to tax `aluminium scrap and Waste' prior to the amendment made with effect from 1st March, 1989. What emerged from the manufacturing process was certainly not aluminium in crude form. 16. There is also another feature of this case, the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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