9911796707
TMI Blog2000 (9) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... mption from payment of duty of excise under notification No. 49/97-CE dated 1-8-1997 as waste and scrap. 2. Briefly stated that the facts are that all the respondents manufacture ingots from induction furnace and were paying duty on the basis of annual production capacity under Section 3A of the Central Excise Act. During the process of manufacture of ingots runners and risers are obtained which are consumed captively by them for manufacture of ingots. Show cause notices were issued to all the respondents for demanding central excise duty on runners and risers as the benefit of notification No. 67/95-CE dated 16-3-1995 was not available to the units working under Annual Production Capacity Scheme. The Assistant Commissioner, under various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the respondents themselves have classified runners and risers under sub-heading 7206.90 whereas waste and scrap of iron and steel is classifiable under Heading 72.04; that the respondents had never disputed the classification of runners and risers and accordingly the benefit of exemption under notification No. 49/97-C.E. cannot be extended to runners and risers as the exemption under this notification is only available to waste and scrap; that the capacity based payment of duty is applicable only to ingots and billets and not to the runners and risers. Finally, he submitted that no evidence has been brought on record by any of the respondents that runners and risers involved in all these matters were fit for melting and not fit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ace Factories on the basis of annual capacity of production of the furnace, duty cannot be charged separately on runners and risers; that the annual capacity is determined keeping in view the crucible installed in the induction furnace unit and accordingly all excisable goods manufactured therein are to be treated as covered under the capacity based scheme. 4. In reply the learned DR submitted that if any product is classifiable under Heading 7206.90 it cannot be treated as waste and scrap which falls under 72.04 of the Tariff; that whether runners and riser are called rollable scrap or by any other name, it remains iron or steel in primary form; that by calling them as rollable scrap or using them for a particular purpose i.e. melting, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of manufacturing the ingots as this fact is mentioned in the show cause notices issued to the Respondents. The Commissioner (Appeals), in the impugned order has given his specific finding that runner and risers are scrap as these emerge after separating from the ingots by cutting. The contention of the Revenue is that Runners Risers are not scrap but are rerollable material as held by the Tribunal in Vishwakarma Steel s case. What are Runners and Risers? It is mentioned in Hariganga Alloy s case that Runners as iron or steel material are solidified molten metal in refractory channel leading to casting of ingot mould. They are formed in runner channel. The riser as iron or steel material is also solidified molten metal that remains in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 (Now 72.04) as waste and scrap. 6. The Tribunal again observed in Bengal Ferro Alloy Steel case that runners and risers are of two types, i.e. one fit for rolling and another fit for melting. The Tribunal in that case set aside the demand of duty in absence of allegation that the runners and risers removed by the Assessees were not fit for rolling. As rightly pointed out by the learned Advocate, even Government has clarified, vide circular No. 27/89 dated 21-9-1989 that Heading 72.04 would cover only such waste and scrap as would generally be used for remelting and consequently would not cover rerollable scrap and such waste and scrap which is not for re-melting will have to be classifiable in other appropriate headings of the Tariff ..... X X X X Extracts X X X X X X X X Extracts X X X X
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