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TMI Blog2010 (12) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... is obviously a spare part of the plant and machinery, a distinct commodity, and is placed in the plant and machinery, as a spare part, or as a replaceable part, it was held that in such circumstances in the process of manufacturing of such part, metal waste or scrap comes into existence, there can be no escape from the conclusion that metal waste or scrap has come into existence as a result of manufacturing process within the meaning of Section 2(f) of the said Act. - Demand of duty and penalty confirmed. - E/1631-1632/2005 - 868-869/2010-EX(PB) - Dated:- 16-12-2010 - Justice R.M.S. Khandeparkar, Shri Rakesh Kumar, JJ. REPRESENTED BY : Shri Bipin Garg, Advocate, for the Appellant. Shri Nitin Anand, DR, for the Respondent. [Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 85 without payment of duty and without issuing central excise invoices for the relevant period. The M.S. Scrap was generated from cutting of M.S. angles. Channels, Sheets, Plates Tars etc. 4. It was the case of the department that the assessee being a manufacturer of cement having various structural portions which use to get damaged either due to prolonged use or due to excessive heat and evaporation and, therefore, it was becoming necessary to replace deteriorated or damaged parts/structures periodically. The scrap which was so obtained while dismantling the said structure was sold off as waste and scrap. Similarly, the conveyor belt installed in the plant used to get worn out deteriorated and damaged in the process of its use and had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... generated by cutting of metal plates, angles, channels, sheets etc. for making of parts of their plant and machinery during the course of repairs and maintenance and the process under which the waste and scrap was generated is covered by the expression mechanical working of metal as is found in the said Section Note. 8. Learned Advocate for the appellants while assailing the impugned order submitted that the authorities below erred in holding that the appellants were liable to pay duty in respect of the waste and scrap cleared by the appellants. There being no excisable goods manufactured by the appellants, the imposition of duty and penalty was not warranted. He further submitted that as far as the appellants are concerned, the issue s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. 328 (Raj.). 10. In Prism Cement case to which one of us was the party (Shri Justice R.M.S. Khandeparkar), the Tribunal had recorded that undoubtedly in relation to the period from January 2001 to September 2002 the scrap generated in Prism Cement factory had been subject matter of proceedings between the parties which had culminated in the appeal before the Tribunal being Excise Appeal Nos. 4657-4666/2004 which were disposed of on 18-8-2008 [2008 (232) E.L.T. 564 (T)] holding that Prism Cement Limited were not involved in the manufacture of iron and steel product but only in maintenance and repair work and further it was not disputed that no credit had been taken on the items used in such repairs and maintenance and, therefore, no dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being plates, sheets, welding electrodes channels, beams, angles etc. and by using such raw material, and subjecting it to manufacturing process, by giving welding, bending or finishing etc. a part required to be replaced comes into existence being which is obviously a spare part of the plant and machinery, a distinct commodity, and is placed in the plant and machinery, as a spare part, or as a replaceable part, it was held that in such circumstances in the process of manufacturing of such part, metal waste or scrap comes into existence, there can be no escape from the conclusion that metal waste or scrap has come into existence as a result of manufacturing process within the meaning of Section 2(f) of the said Act. 12. It is also pertine ..... X X X X Extracts X X X X X X X X Extracts X X X X
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