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TMI Blog2015 (6) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ue allowed the appeal. The Hon’ble High Court has set aside the Tribunal s order by relying Hon’ble Apex Court decision in the case of Indian Aluminium & Co. [2006 (9) TMI 6 - SUPREME COURT OF INDIA] And Grasim Industries Ltd. (2011 (10) TMI 2 - SUPREME COURT OF INDIA). Following these decisions, impugned order is set aside - Decided in favour of assessee. - E/S/41208/2014 in E/40962/2014 - Final Order No. 40546 / 2015 - Dated:- 12-5-2015 - Hon ble Shri R. Periasami And Hon ble Shri P. K. Choudhary,JJ. For the Applicants : MS. Swetha Giridhar, Adv. For the Respondent : Shri K.P. Muralidharan, AC (AR) ORDER Per: R. Periasami The issue involved in this appeal is whether Aluminium Dross emerging as product is excisa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue involved is governed by the past decisions of the Tribunal and also of the Supreme Court. Thus, it agrees with its earlier Judgments. Thereafter, the Hon ble Supreme Court was required to consider this issue and as already referred by us in the case of Commissioner of Central Excise v. Indian Aluminium Co. Ltd. reported in 2006 (203) E.L.T. 3 (S.C.). Finally, in the case of Grasim Industries Ltd. (supra), the Hon ble Supreme Court referred to all the amendments including the insertion of the Explanation and on noticing the issue before it, proceeded to hold as under: 7. We have heard the learned counsel for the parties. In the present case, the assessee had undertook repair and maintenance work of his worn out old machinery or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various processes but that some methodology was required for declaring that a particular process amounted to manufacture. The language of the amended Section 2(f) indicates that what is required is not just specification of the goods but a specification of the process and a declaration that the same amounts to manufacture. Of course, the specification must be in relation to any goods. 23. We are in agreement with the submission that under the amended definition, which is an inclusive definition, it is not necessary that only in the section or chapter note it must be specified that a particular process amounts to manufacture. It may be open to so specify even in the tariff item. However, either in the section or chapter note or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act comes into play only when the goods are excisable goods under Section 2(d) of the Act falling under any of the tariff entry in the Schedule to the Tariff Act and are manufactured goods in the terms of Section 2(f) of the Act. Therefore, the conditions contemplated under Section 2(d) and Section 2(f) has to be satisfied conjunctively in order to entail imposition of excise duty under Section 3 of the Act. The manufacture in terms of Section 2(f) includes any process incidental or ancillary to the completion of the manufactured product. This any process can be a process in manufacture or process in relation to manufacture of the end product, which involves bringing some kind of change to the raw material at various stages by different o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the process of repair and maintenance are not raw material used in the process of manufacturing of the cement, which is the end product. The issue of getting a new identity as M.S. Scrap and Iron Scrap as an end product due to manufacturing process does not arise for our consideration. The repairing activity in any possible manner cannot be called as a part of manufacturing activity in relation to production of end product. Therefore, the M.S. scrap and Iron scrap cannot be said to be a by-product of the final product. At the best, it is the by-product of the repairing process which uses welding electrodes, mild steel, cutting tools, M.S. Angles, M.S. Channels, M.S. Beams etc. 21. We do not see how, in the light of these authoritative p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uggestion. It is only thereafter that we are called upon to decide the matter. It is only to enable Mr. Sethna to take such instructions that the Judgment was not pronounced immediately. However, finding that the matter stands completely covered by the Judgments of the Hon ble Supreme Court and which have been totally disregarded by the Tribunal that we are unable to sustain and uphold its conclusions. The impugned order can be safely termed as perverse and vitiated by an error of law apparent on the face of the record. The Tribunal has reached a conclusion, which, no reasonable person in the position and as an adjudicating body could have reached. Its order passed on 19th August, 2014 and applied to the Petitioner s case is quashed and set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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