9911796707
TMI Blog2009 (3) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... 04, and that the same needed to be cleared on payment of duty – held that - there is no question of holding scrap as final product and disallowing the benefit of clearance of scrap for converting into ingots, under Rule 4(5)(a). The demand of duty can only be confirmed, if there is diversion of generated scrap for any other purpose other than reconversion. It is not in dispute that in the present case, the scrap cleared by the appellants under job work challan has been returned in the form of ingots and properly accounted for. – demand set aside. X X X X Extracts X X X X X X X X Extracts X X X X ..... s not permitted to be cleared in terms of Rule 4(5)(a) to a job worker. However, it is seen that the scrap so sent to the job worker is returned back to the Appellants in the form of ingots, which is then further processed in the Appellants' unit to manufacture flats, strips, rods, which are cleared on payment of duty. Thus there is absolutely no loss of any revenue to the Government. 8. The waste and scrap generated are the remnants emerging as a necessary consequence of the manufacturing activity of cold rolling and cold drawing of copper bar undertaken by the appellants for bringing out the final product. These waste and scrap generated during the process of manufacture instead of being disposed of in the market, is being recycled and r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or carrying out any other operation necessary as the case may be, for the manufacture of the final product, as long as procedure of Rule 57F(2) is followed." In the same case, it has been further held that - "Commercial prudence and technological feasibility would induce a manufacturer to reconvert, reprocess, recondition and otherwise deal with intermediate goods, by-product, scrap, refuse, waste, etc. to obtain maximum targeted production of the final product by utilizing the facilities available in his premises or by sending them out on job work to other places. Only when final product is no longer profitable or technologically possible, a manufacturer would treat such resultant stage of by-product, refuse, scrap to be no longer usefu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - Waste - Brass components from brass rods manufactured - Removal of brass waste for remelting and return by job worker for further use in manufacture - Revenue contended that Rule 57AC of erstwhile Central Excise Rules, 1944 not applicable as only input or capital goods to be removed thereunder and brass scrap is not input. Duty demanded on said brass waste and scrap - Waste to be understood to denote a form of inputs after partial or full reprocessing which could not be used further - Impugned order set aside." 13. In the impugned Order-in-Appeal, the Commissioner (Appeals) has given findings only on the dutiability of scrap relying on the case of Khandelwal Metal Industries - 1985 (20) E.L.T. 222 (S.C.) and M/s. Elphinstone Metal Rolli ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
