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TMI Blog1998 (2) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Shri A.R.S. Kumar, JDR, for the Respondent. [Order per : Gowri Shankar, Member (T)]. - The appellant is a manufacturer of blended lubricating oil. Its raw materials are mainly lubricating oils and other chemicals in crude form which are supplied in drums. After it emptied the contents of these drums which are taken up for manufacture, the appellant sold these drums without payment of duty t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of manufacture. The drums leave the factory in the same shape and condition in which they were received except for possible changes to them which have taken place in the course of transport and handling. Even if there is held to be manufacture what resulted was not scrap within the meaning of the term occuring in Note 6(a) to Section XVI of the Tariff. He agrees that there is a decision of the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entative contends that the Commissioner has indicated how the processing of the inputs amounts to manufacture and relies on the decision in West Coast Industrial Gases Ltd. v. CCE. 4. Reference to Rule 57F(4) does not seem very relevant to us. This rule provides in Clause (2) for the nature of utilisation of credit. The departmental representative contends rightly, in our view that even when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thing by emptying drums. The Tribunal in West Coast Industrial Gases Ltd. v. CCE has held that drums which were emptied of calcium carbide which they contained must be considered to be scrap which arises in the preparatory stage of manufacturing process. No reasoning has been given to justify this conclusion. Apart from this, the issue before the Tribunal was not one of manufacture. The issue was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that this was done. 6. However even if we assume that manufacture takes place it cannot be said that waste arises. In terms of the Note 6(a) to Section XVI of the Tariff, the barrels would be considered to be waste if terms of wear and tear they were no longer usable as barrels. There is no finding that this is the case. It is difficult on the face of it to accept that a barrel or drum ceas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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