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TMI Blog2018 (9) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... mber (Technical) And Mrs. Rachna Gupta, Member (Judicial) For the Appellant : Mr.K.K. Anand, Advocate Ms. Surbhi Sinha, Advocate For the Respondent : Mr.V.B. Jain, D.R. ORDER PER: BIJAY KUMAR Present appeal has been filed by the appellant against the impugned order wherein the ld. Commissioner has demanded the duty on the basis of Rule 3 (5) of Cenvat Credit Rules, 2004 on the pretext that the input has been cleared as such. 2. The factual matrix of the case 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s such from imported honey grade brass scrap. The said imported scrap mainly contains brass metal but it also contains impurities like iron, steel, rubber, plastic, dust etc. which is integrally attached to the main material/brass scrap. Before feeding resultant brass scrap in the furnace during the manufacturing process, the said foreign materials (impurities) attached to the honey grade brass scrap is segregated manually and then such sorted material is issued for further process like breaking, cutting 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 hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are different. 4. In view of above, it is clarified that the clearance of segregated foreign materials namely iron, steel, rubber, plastic, dust etc. from honey grade brass scrap before feeding in the furnace cannot be treated as removal of inputs as such as envisaged under rule 3(5) of CENVAT Credit Rules, 2004. The segregated foreign material in such situation, as has been explained above, shall be cleared on payment of Central Excise duty on transaction value as per its appropriate classification and rate of duty determined 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 sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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