9911796707
TMI Blog1998 (3) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... ferro alloys free of duty under Notification No. 198/84-C.E. under Chapter X of the Central Excise Rules, 1944. The condition of the notification was that such duty free receipts should be used for the production of goods falling under Item No. 25 which goods should not be exempted from duty or chargeable to nil rate of duty. The assessees manufactured such products and also manufactured scrap during the manufacture of such products. That scrap was cleared by them in terms of entry at S.No. 5 of Notification No. 62/85-C.E. Show cause notices were issued by the department holding that in terms of Notification No. 198/84 both the end products should have been cleared on payment of duty. Duty was therefore demanded on the waste and scrap so cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um) if used in iron and steel, and products thereof. - In exercise of the powers conferred by sub-rule (1) of rule 8 of Central Excise Rules, 1944, the Central Government hereby exempts ferro-alloys (other than ferro-molybdenum) falling under Item No. 25 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), from the whole of the duty of excise leviable thereon under section 3 of the said Act : Provided that, - (i) the said ferro-alloys are used in the manufacture of iron and steel, and products thereof falling under the said Item No. 25 which are not exempted from the whole of the duty of excise leviable thereon or are not chargeable to nil rate of duty; and (ii) the procedure set out in Chapter X of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the present assessees under Notification No. 198/84 to the extent that the ferro-alloys were not used for the manufacture of dutiable products. In other words they were required to pay duty leviable on the ferro-alloys received by them without payment of duty to the extent the part thereof was used in the manufacture and clearance of goods which were either exempted or were chargeable to nil rate of duty. The conditions of 62/85-C.E. were also identical but that the primary or the first manufacturers of scrap to enjoy the benefit were the present assessees. Shri N.C. Jain is correct in stating that as long as assessee followed the conditions prescribed in that notification they were entitled to clear the waste and scrap of steel under t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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