9911796707
TMI Blog1997 (8) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... g 7212.50. With effect from 1st March, 1986 the Modvat credit Scheme was introduced to give credit to the manufacturers in respect of the duty of excise already paid by them and allow them the benefit of set off of such credit of duty already paid against the duty payable by them on the scooters as well as parts and accessories thereof. 3. After working of these sheets for the manufacture of parts of scooters some portions of the sheets remain. Some of these portions are used by the appellant for the manufacture of small parts of the scooters. 4. The dispute which arises in the present case is as to how should these portions be classified. According to the respondent these portions, which the Tribunal has for the sake of convenience descr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would fall under Heading 7210.10. The contention of Shri A. Subba Rao, learned counsel for the respondent, however, was that the appellant had bought sheets and had claimed credit at the rate of Rs. 715/- per ton and now when parts thereof are used in manufacture of other items these portions of off-cuts would correctly be classified under Heading 7212.32. 7. It would, at this stage, be appropriate to set out the three competing entries. These are as follows : "72.03 Waste and Scrap 7203.10 - Of iron Rs. 80/- per tonne 7203.20 - Of steel Rs. 365/- per tonne 72.10 Angles, shapes and section of iron or steel, not elsewhere specified (other than slotted angles and slotted channels), rolled, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... two sides parallel and the other two sides equal, and which are not hollow. Sheets A hot or cold-rolled flat product, rolled in rectangular section of thickness below 5 millimeters and supplied in straight lengths, the width of which is at least hundred times the thickness and the edges are either milled, trimmed, sheared or flame cut and includes a corrugated sheet." 9. Applying the principle contained in the aforesaid Rule 4 what has to be seen is as to what is the appropriate heading to which the off-cuts which are used by the appellants for the manufacture of ancillary items are most akin. These expressions as contained in Chapter 72 of the Excise Act should be read along with the tariff items contained in the same chapter. 10. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the attention of the tribunal was not drawn to Tariff Entry 72.10 but on the facts, as found by the tribunal, it is clear that the off-cuts which are odd shaped and are used by the appellant do not answer to this description of sheet but, on the contrary, can only be regarded as `shapes' falling under Tariff Entry 7210.10. The rate of duty of this is Rs. 365/- per ton which is the same as that on waste and scrap of steel under Tariff Entry 7203.20. It is this duty of Rs. 365/- per ton which has to be paid by the appellant on those pieces of steel or off-cuts which are cleared by the appellant for use in the manufacture of ancillary items and not Rs. 715/- per ton as demanded by the respondent. 12. The appellant, therefore, was entitled t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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