9911796707
TMI Blog1996 (12) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... circles were Manufactured out of the waste and scrap of copper. Such waste and scrap was purchased from the open market. During the relevant time the waste and scrap was classifiable under sub-item 1(b) of Item No. 26A of the Central Excise Tariff. The appellants had no duty paying documents with regard to such waste and scrap. In the classification list filed during May, 1984 they had claimed exemption in respect of their finished products, plates, sheets, circles etc. under exemption notification No. 74/65-C.E., dated 1-5-1965 (as amended). It was alleged in the show cause notice dated 24-9-1984 that as there was no proof of payment of duty with regard to the waste and scrap purchased from the open market and as the explanation providing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Collector of Central Excise - 1993 (66) E.L.T. 81 (Tribunal) and Navsari Processing Industries v. Collector of Central Excise, Baroda - 1996 (85) E.L.T. 386 (Tribunal). 3. In reply, Shri M. Jayaraman, JDR, submitted that the exemption notification had to be construed strictly and is clear from the explanation appended to notification No. 74/65-C.E., the deeming provisions were applicable only to sub-item (1) and sub-item (1a) of Item No. 26A, while waste and scrap was classifiable under Item No. (1b) and it was not covered by the deeming provisions. 3A. We have carefully considered the matter. The exemption notification no. 74/65-C.E., dated 1-5-1965 (as amended) is extracted below : Partial exemption to plates, sheets, cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 164/66-C.E., dated 15-10-1966; No. 58/68-C.E., dated 23-3-1968; No. 179/70-C.E., dated 26-12-1970; No. 187/73-C.E., dated 29-9-1973; No. 121/74-C.E., dated 1-8-1974; No. 113/77-C.E., dated 18-6-1977 and No. 92/80-C.E., dated 19-6-1980.] 4. It is seen that under the explanation all stocks of copper falling under sub-item (1) or sub-item (1a) of Item No. 26A available in the market on or after the 1st Day of August, 1974 were to be deemed to have discharged the full crude stage duty liability. Sub-item (1) covered copper in any crude form including ingots, bars, blocks, slabs, billets, shots and pellets. Sub-item (1a) covered wire bars, wire rods and castings, not otherwise specified. The waste and scrap were classifiable under sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fer to the Larger Bench decision of this Tribunal in the case of M/s. Machine Builders & Ors. v. Collector of Central Excise, Bolpur - 1996 (83) E.L.T. 576 = 1996 (12) RLT 817 (CEGAT-NB), where the Tribunal had held that if the input are wholly exempt from duty, deemed credit was not admissible. They have added that the scrap input was clearly and wholly exempt from duty. In that case relating to the deemed credit, the Tribunal held that the appellants were not entitled to deemed credit. 7. The learned counsel has referred to the Tribunal's decision in the case of Ajit Metal Industries v. Collector of Central Excise - 1993 (66) E.L.T. 81 (Tribunal). In that decision, the Tribunal had observed that the word 'leviable' means duty levia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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