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TMI Blog2002 (7) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... would generally be used for re-melting and consequently would not cover re-rollable scrap and, further that denial of the benefit of exemption under Notification No. 202/88-C.E. on the ground that re-rollable scrap is "waste and scrap" falling under Heading 72.04 is not correct. The Bench has held in J.S.W. Iron Steel Industries case that the Board's circular is binding on the departmental authorities and has to be given effect to. In Adarsh Steel Re-rolling Mills case, another Bench held that the benefit of Notification No. 208/83-C.E. was not available to that part "as waste and scrap falling under 72.03 was not specified as an input in Serial No. 2 of the Table annexed to the Notification". Whether the scrap used by M/s. Adarsh Steel "Re-rolling" Mills in that case was re-rollable scrap or not is not explicit in the text of the order. Presumably, it was re-rollable scrap only. In Shreeram Steel Industries case, the same Bench held that re-rollable scrap was not specified as an input in the Table annexed to Notification No. 202/88-C.E. and hence the benefit of exemption under the Notification would not be available to the final products made from such scrap. Thus there appears ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at order. The appeal against such an order has no merit. The appeal should fail on that ground alone. Certainty about law and uniformity in its implementation are central in ensuring rule of law. Therein lies the necessity to follow precedent and subordination of adjudicating authorities to their appellant authorities. Uniformity in tax administration is even more important than legal correctness. This has time and again been stressed by the Apex Court. We may reproduce here the relevant portion of the decision of the Apex Court in the case of Kamlakshi Finance Corporation Ltd., 1991 (55) E.L.T. 433 which has been relied upon by the Commissioner (Appeals) while passing his order : "The order of the Appellate Collector is binding on the Assistant Collectors working within his jurisdiction and the order of the Tribunal is binding upon the Assistant Collectors and the Appellate Collectors who function under the jurisdiction of the Tribunal. The principles of judicial discipline require that the orders of the higher appellate authorities should be followed unreservedly by the subordinate authorities. The mere fact that the order of the appellate authority is not "acceptable" to the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this connection to Ministry's clarification No. B-28/8/83-TRU, dated 8-9-83 wherein under Para 10 it was clarified with regard to classification of waste and scrap that "waste and scrap means waste and scrap of iron and steel fit only for the recovery of metal or used for the manufacture of chemical". It also stated that "other kinds of product commonly known as re-rollable and industrial scrap which are used for purposes other than this would not merit classification as waste and scrap. These products would have to be classified under the relevant item 25 as per definition given in the explanation in the said item." The Circular No. 27/89, dated 21-9-89 re-iterated this position. It stated that "Heading 7204 would not cover an article which could be converted into another article by hot rolling without it being necessary to remelt the metal first. The Board, therefore, concluded that Heading No. 7204 read with Note 6(a) to Section XV and HSN Explanatory Notes at Pages 987-988 would cover only such waste and scrap as would generally be used for remelting and consequently would not cover re-rollable scrap. Such waste and scrap which is not for re-melting will have to be classifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is clarified that no distinction need be made between fresh unused items and old and used items for the purpose of this notification. Old and used items should also be considered to be inputs and deemed to be duty paid for the purpose of this notification so long as their physical characteristics render them classifiable under any of the sub-items mentioned under the input column in the said notification. It is also clarified that old, used and unserviceable rails which are purchased by re-rollers for cutting and rolling into various other products cannot be considered as materials for railway track construction. As such, they would fall under sub-item (11) of the new Item No. 25 which covers unspecified angles, shapes and sections and hence, the same may be treated as inputs for the purpose of Notification No. 208/83-C.E., dated 1-8-83". 10.The learned Counsel has pointed out that in the light of the above clarification, all used materials like railway track are eligible for the exemption. In the present case one of the sources of inputs is the breaking of condemned railway engines. In the adjudication proceedings the appellants had submitted that their inputs are from divers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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