9911796707
TMI Blog2002 (8) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... per moulds for casting steel. In making these copper moulds, copper plates are used. The copper plates are subjected to processes like turning, boring etc. in order to make them suitable for manufacture of a mould. Certain scrap arises during this process of turning and boring. Whether scrap arising out of broken moulds is dutiable or not is an issue to be considered herein. 2. Shri Shivadass, appearing for the appellants submitted that the very issue has been considered by the Tribunal in a series of cases. He referred to the following cases :- (a) Hyderabad Industries Ltd. v. Union of India - 1995 (78) E.L.T. 641 (S.C.) (b) Hyderabad Industries Ltd. v. Union of India - 1999 (108) E.L.T. 321 (c) Markfed Vanaspati All ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant. The dismantling and removal of scrap were carried out by the buyers of condemned machinery. Further, dismantling of machines is not a process of manufacture leading to emergence of new goods. The ld. Counsel for the appellants also referred to the decision of this Tribunal in the case of Diesel Component Works, Patiala v. CCE, Chandigarh [2000 (120) E.L.T. 648 (T) = 2000 (40) RLT 641] that scrap arising in the dismantling of old railway engines was not liable to duty. For these reasons, the appellants have contended that demand of duty in respect of scrap involved in the present case is not legally tenable. As against this, ld. SDR submitted that, scrap is an excisable item specified in the Central Excise Tariff. 16. The deman ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demand and said since party has taken Modvat credit on copper plates, the Department was justified in raising the demand of duty with reference to dismantling of moulds. In reply, Shri Shivadass submitted that though party has taken credit on copper plates, same has been used in the manufacture of moulds and since the copper plates are no longer in existence same cannot be attributable to dismantling of moulds while raising the duty on scrap out of broken moulds. 5. We have carefully considered the submissions made by both sides. On going through the submissions and perusal of the records, we find that the scrap arising out of the broken moulds is not dutiable. We have also taken note of the ratio of the said decisions referred to by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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