9911796707
TMI Blog1999 (7) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... partment that since the goods were cleared in three shapes namely :- (a) in the form of strips in coils, (b) in the form of small sheets of varying lengths between 10 ft. to 1 ft.; and (c) squeezed coils which they understand was jammed waste, and that the buyers thereof pre-dominantly used them for other than melting scrap such as clamps, cradles, washers etc., therefore, the appellant has mis-classified the same as scrap, whereas these strips and sheets were usable for the manufacture of such products directly i.e. without melting. 2. Heard Sri S. Raghu, learned Advocate for the appellants, who submits that at the very outset, the demand by show cause notice dated 17-9-1990 for the period from August, 1985 to May, 1990 was pre-d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat all along this period, the departmental officers concerned knew what was the nature of item being cleared as scrap and accounted for as scrap in the R.G. 1 and stored as scrap at the appointed place in the bonded store room or in the factory. Therefore, investigation of all the invoices and all the gate passes as well as invoices describing the products sold as scrap and in view of the classification list describing it as scrap and in view of the access available and inspection made by the Central Excise Officers, it is just not possible to hold the view that they suppressed the information or mis-declared the goods with an intent to evade duty, hence the larger period was not invokable. He further submits that as far as the period whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f scrap as contained in the tariff and therefore, the sheets removed as scrap but which had residual portions which could be used by the buyers for packaging smaller end products was not to be treated as waste and scrap, in view of the Note 6 to Section XV of the CETA. The Tribunal had noted that the waste and scrap of base metal has been defined under Chapter 72 as that which is fit for only recovery of metal etc. but they should not be usable as such because of breakage, cutting up, wear or other reasons. In this case, the use has been also otherwise than the recovery of metal and therefore, the learned DR submits that the ratio of this decision is applicable to the facts of the present case. 4. At this stage, the learned Advocate rebut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Officers in pursuance of their prescribed duty repeatedly visited their factory and physically took the stock of the said items, which were accounted for in a separate section of RG 1 as waste and scrap. During this activity, it is clearly envisageable that the Officers at the time of the inspection of the said scrap could have physically seen the nature of these goods, which had been accounted for as scrap in the RG 1 Register. Therefore, it is clear from this that the charge of mis-declaration with intent to evade duty and that the department was not at all aware of the actual nature of these goods does not sustain from these facts. Therefore, we are of the considered opinion that the extended period is not available and hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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