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TMI Blog2008 (5) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... ed orders, the Commissioner (Appeals) vacated the demand of duty on waste and scrap cleared by the respondents during the periods 2/03 to 11/03 and 12/03 to 8/04. The Commissioner (Appeals) found that the respondents had cleared without payment of duty, scrap obtained from scrapping of worn out parts of capital goods. The impugned scrap had not arisen from any manufacturing process. He according ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y was correctly demanded. As regards worn out capital goods, it is submitted that the definition of scrap appearing in the tariff covered worn out parts of machines which could not be used as such. She cites Section Note 8(a) of Section XV of the Central Excise Tariff Act, 1985 in support of this claims. 3. Ld. Consultant for the respondents submits that the assessee is engaged in the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital goods. It is submitted in the appeals that the respondents had also cleared scrap that had arisen out of manufacture of components in their workshop. However, there is no break up as to what part of demand relates to the manufactured scrap and what part relates to scrap of capital goods. Show Cause Notice or the order-in-original does not contain details as to the iron and steel items manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g-up, wear or other reasons. The above note does not support the case of the Revenue . The note envisages only such scrap, which arises from the manufacture or mechanical working of metal or metal goods definitely not usable as such. In the instant case, it is not established that the impugned goods arose from any process of manufacture. Nor that they had arisen from mechanical working of metal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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