1999 (7) TMI 307

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..... of the Steel sheets. The waste and scrap of the Steel will be eligible for the benefit of Notification No. l71/88-C.E. (Sl. No. 3). He, further, submitted that the waste and scrap arising in the Appellants factory is covered by clause (ii) of the conditions specified in the column of the table appended to the Notification against Sl.No. 3. Both the Assistant Collector and Collector (Appeals) held that the benefit of Notification No. 171/88 was not available as the Waste and scrap was covered by clause (i) of the Notification. He relied upon the decision in Order-in-Appeal No. SKM-120/90, dated 10-4-1990 wherein similar issue was held in favour of the assessee and the benefit of Notification No. 91/88 (predecessor of Notification No. 171/8 .....

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..... nd scrap of iron (irrespective of the phosphorus content) arising in the course of manufacture of foundry grade iron referred to at clause (i) above. 03. 72.04 Ferrous waste and scrap Nil Provided that such waste and scrap have arisen from - (i) goods covered by Chapter 72 (excluding slotted angles and slotted channels, and goods and materials of Chapter 72 or 73 obtained by breaking up of ships, boats and other floating structures); sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements; welded angles, shapes and sections of iron or steel; rails sleepers (cross-ties); tubes, pipes and hollow prof .....

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..... er floating structures, are mentioned in clause (i) of the condition. Steel Sheets are classifiable under chapter 72 of the schedule to the Central Excise Tariff Act. The waste and scrap has arisen during the course of manufacture of the metal containers out of the sheets and it is wrong to say that waste has arisen from the Metal Containers. Another condition specified in clause (i) is that the credit of duty has not been taken under Rule 56A or 57A. As the steel sheets are covered under clause (i) of the Notification and Modvat credit has been availed of. The conditions specified in the Notification are not satisfied and accordingly the benefit of Notification is not available to the waste and scrap in the present matter. Accordingly the .....

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