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TMI Blog1994 (12) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... Size of scrap may be relevant for fixation of price but it could not reflect on the nature of scrap. Appeals are allowed and the order passed by the Tribunal is set aside. The question of law raised by the appellant is decided by saying that the scrap cleared by the appellant in each year having been melted and re-used as iron ingots was remelting scrap dutiable under Item 26 of the Tariff Schedule. - 3196-96A of 1986 - - - Dated:- 16-12-1994 - R.M. Sahai and K.S. Paripoornan, JJ. [Judgment per : R.M. Sahai, J.]. - The only dispute that arises for consideration in these appeals directed against the Order of Central Excise Gold (Control) Appellate Tribunal is whether scrap obtained by the appellant in course of manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not serviceable. Even the Tribunal held that scrap produced by appellant, `did not strictly answer to the description but they can resemble or closely resemble them, qualifying to be called sub-standard blooms or slabs or bars or channels'. But a sub-standard article is not scrap as understood in commercial parlance or trade circle. Two reasons have been given by the Tribunal for including scrap of iron and steel in Item 26AA - one, price circular issued by Controller of Iron and Steel classifying scrap into industrial, re-rolling and melting scrap and fixing different rates for each and other the size of scrap. The Tribunal held that even though scrap sold by the appellant to M/s. Tata Yodogawa Ltd. was melted to produce ingots but that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s" of steel mills. Cuttings of rails, billets, plates, axles, channels etc. supplied to M/s. Tata Yodogawa Ltd. are `arisings' of TISCO's mills. These scraps (process scrap) are usually treated as melting scraps in developed countries as well as in India. There are different grades of melting scrap - heavy, medium and light.' He further observed that the technology has changed and in view of the developments in iron and steel industry the size factor could not always be main criterion for the classification of steel scraps. 4.Although this letter is not relevant but it goes to demonstrate that size of the scrap is not determinative whether it was melting scrap or not. `Scrap' according to dictionary means, `a small piece cut or broken fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpreting the entry, for levying duty under the Central Excises Salt Act, 1944. The Controller might have classified scrap depending on size and terming it as rolling, melting and industrial scrap but that could not render it as semi-finished steel products. Size of scrap may be relevant for fixation of price but it could not reflect on the nature of scrap. 6.In the result, the appeals are allowed and the order passed by the Tribunal is set aside. The question of law raised by the appellant is decided by saying that the scrap cleared by the appellant in each year having been melted and re-used as iron ingots was remelting scrap dutiable under Item 26 of the Tariff Schedule. 7.The appellant shall be entitled to its costs. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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