9911796707
TMI Blog2018 (9) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... se is that the appellant is engaged in the manufacture of alloy ingots out of imported as well as marketed scrap of aluminium. Before the process of manufacture of the finished products, they purified the aluminium and segregated the impurities contained therein so as to obtain the quality product. Impurities which are weeded out from the raw-material i.e. aluminium scrap is sold by the appellant on the basis of value, available for the same in the market, that is to say on the transaction value and pay duty accordingly. It is the case of the Department that the clearance of impurities are nothing but the removal of inputs as such and therefore, the appellant is required to reverse proportionate Cenvat Credit taken on such quantity of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. wherein big pieces of scrap are converted into small pieces so that the same can be fed into the furnace. Ultimately the brass scrap is fed into furnace where brass melts but materials like steel, iron etc. do not as they have higher melting point. Molten brass is poured for manufacturing whereas foundry waste of iron, steel, slag is cleared and sold separately. Such foundry waste is quite clearly process waste. 2. However, there is another category of waste viz. foreign materials segregated initially and not fed in furnace. The issue is when such segregated foreign material is cleared by the brass manufacturers, can it be treated as clearance of "inputs as such" and accordingly are the manufacturers required to pay an amount equal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etermined on merits. 5. Difficulty faced, if any, in implementing the circular should be brought to the notice of the Board." 5. Ld. DR has reiterated the grounds contained in the impugned order and said that in view of the finding made by the ld. Adjudicating authority, order is required to be upheld. 6. We have heard the ld. Advocate and ld. DR and also perused the appeal records. The perusal of the Appeal record and the Circular of CBEC, cited above, we feel that the Board's Circular squarely covers the issues in hand, as in this case also, the issue is of segregation of impurities from the aluminium scrap before they are put to use in the manufacture of Aluminium Ingots, molten metal etc. Accordingly, we allow the appeal. [Dictated ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
