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TMI Blog2019 (9) TMI 1499X X X X Extracts X X X X X X X X Extracts X X X X ..... the segregated scraps at the transaction value as per its appropriate classification and the rate of duty given in the Central Excise Tariff. The demand is bad and the show cause notice is not maintainable - Appeal allowed - decided in favor of appellant. - Excise Appeal No. 51603 of 2019 - FINAL ORDER NO.51634/2019 - Dated:- 30-9-2019 - MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) AND MR. BIJAY KUMAR, MEMBER (TECHNICAL) Shri B.L.Yadav, Consultant for the appellant Shri H.C. Saini, Authorised Representative for the respondent ORDER The appellant a manufacturer of Aluminium Extrusions having their raw materials - Aluminium Scrap. Before feeding the scrap in the furnace, the foreign material is segregated manually and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the earlier round and by Final Order No.A/56811 of 2017 EX(DB) dated 20.09.2017, the Tribunal allowed the assessee s appeal by way of remand taking notice of the Board s Circular No.1029/17/2016-CX dated 10.05.2016, where the clarification was given in respect of segregation of impurities like iron, steel, rubber, plastic, dust , etc. from scrap and upon clearance of unwanted items, like iron, rubber, dust, etc., it was clarified that such segregated items cannot be treated as removal of inputs as such, as envisaged under Rule 3(5) of the CCR, 2004. Further, clarified that segregated foreign materials in such situation, shall be cleared on payment of central excise duty at transaction value as per its appropriate classification and rate o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r method of sorting iron from the Aluminium scrap as in this case neither the iron is taking part in the process of manufacture nor does it affects the process of manufacture. It would be not be correct to say that that scrap is manufactured out of scrap. The dutiability on scrap would arise, only if the same emerges from the skilful manipulation or processing of raw materials. In the facts and circumstances of the present, the said iron scrap has not undergone any manufacturing process and the same had arisen out of segregation of imported materials, hence was required to be cleared by the assessee in accordance with Rule 3(5) of the Central Excise Rules 2004 as the process of sorting/segregation of scrap undertaken by the assessee does no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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