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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 ..... ould not amount to manufacture. So also, in the case COMMISSIONER OF CENTRAL EXCISE VERSUS INDIAN ALUMINIUM CO. LTD. [ 2006 (9) TMI 6 - SUPREME COURT] it has been held that the process of cutting/slitting of jumbo coils into baby coils/sheets would not amount to manufacture. When the process of cutting and slitting itself does not amount to manufacture 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 - The very same issue was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The Department entertained a view that the scrap arising out of such activity of cutting and slitting of steel coils is covered under the definition of waste and scrap mentioned in Note 8 to Section XV of the Central Excise Tariff Act, 1985 and therefore, the same is liable to Excise Duty. 1.3 Show Cause Notice dated 02.02.2010 was issued proposing to demand Central Excise Duty on the waste and scrap manufactured and cleared by them for the period from February 2008 to December 2008 and to appropriate the amount of ₹ 34,46,311/- already paid by them as duty under protest. The Show Cause Notice also proposed to demand interest and for imposing penalties. After due process of law, the Original Authority vide Order-in-Original No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horized Representative for the Department and perused the synopsis of the assessee and the documents placed before us. 5.1 The Department has issued the Show Cause Notice demanding duty on the waste and scrap, contending that it is an excisable commodity classifiable under Chapter 72 and is liable to Central Excise Duty. Note 8 to Section XV of the Central Excise Tariff Act, 1985 defines waste and scrap as metal waste and scrap from manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons. In this case, the scrap is arising out of cutting and slitting of steel coils. 5.2 The assessee has contended that since the coils imported are of bigger le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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