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TMI Blog2021 (3) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... /Hot Rolled Steel Coils and sheets. They were importing and locally procuring steel coils and trading the coils as such only to M/s. Hyundai Motor India Ltd., Irungadukottai. The imported coils were slitted into smaller coils or sheared into sheets of required sizes. They had a slitting and shearing machine to undertake the above activity. They were filing nil ER-1 return as a manufacturer and as a dealer, they were passing on the CVD duty and Special CVD on the imported coils/locally procured steel coils. 1.2 During the course of verification of records, it was noticed that the appellants were re-melting scrap of iron which emerged from slitting and shearing of coils. The Department entertained a view that the scrap arising out of such ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has been placed upon the decision of the Hon'ble High Court of Jharkhand in the case The Commissioner of Central Excise, New Baradwari, Jamshedpur v. M/s. Castings (India) Inc. and anor. in Tax Appeal Nos. 21, 22 and 23 of 2007 dated 22.08.2016. The appellant has also relied on the decision in the case of M/s. Modi Rubber India Ltd. v. Union of India and anor. reported in 1987 (29) E.L.T. 502 (Del.) to argue that waste and scrap arising during manufacture cannot be subjected to duty. 3. Learned Authorized Representative Shri L. Nandakumar appearing for the Department supported the findings in the impugned order. 4. We have heard the Learned Authorized Representative for the Department and perused the synopsis of the assessee and the doc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture within the meaning of Section 2 (f) of the Central Excise Act, 1944, scrap arising out of such activity cannot be subjected to Excise Duty for the simple reason that the appellant has not consciously manufactured any waste or scrap. Emergence of such waste and scrap of iron is incidental to the activity of slitting and cutting of bigger coils into smaller ones. 7.2 The very same issue was decided by the Tribunal in the case of M/s. Rail Coach Factory v. Commissioner of Central Excise reported in 2009 (236) E.L.T. 160 (Tri. - Del.) 8. Notification No. 89/95-CE dated 18.05.1995 issued by the Department also supports the contentions of the assessee. 9. From the above discussions, we are of the considered opinion that the demand of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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