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TMI Blog2004 (8) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... rap of iron and steel generated during civil construction - when in such construction duty paid iron and steel on which no MODVAT credit is availed, is used. The issue is covered in Gujarat Ambuja Cements Limited v. CCE, Rajkot - 2004 (163) E.L.T. 399 (Tribunal - Del.). The Tribunal held that scrap having arisen during the process of construction of plant and no credit of duty paid on steel material having been taken, scrap is not liable to excise duty. As we could see 'non-availing of credit' and 'civil construction' are important elements in the above said decision. In the appellants' case Modvat credit is taken on duty paid on structural parts, M.S. Plates, Pipes, tubes, channels and plain plates totally weighing 22,207.573 MTS. Admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that iron scrap and copper and aluminium scrap, are being dutiable items, it is not relevant whether credit was taken on another material or not". To say the least this way of dealing with the matter is perfunctory. The appellants' plea before him is that they never procured copper and aluminium as what was procured by them was copper and aluminium cable. The waste arising out of these cables cannot be classified under Chapters 74 and 76 respectively. The specific entries under these chapters, which deal with scrap of copper and aluminium waste, are 7404.10 and 7602.10. It is the appellants' plea right from the beginning that the inputs, they brought were copper and aluminium cables falling under Chapter 85 and the credit was taken of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation sub-heading 2710.90 deals with others). The Commissioner says it is arguable but since duty has already been paid and the point is not pressed, he does not deal with the issue. We find from the reply to the show cause notice, the appellants contested this issue very much. It is argued that no duty is payable on sludge unless it is specifically covered in the tariff. Sludge is nothing but thick soft wet mud or similar viscose mixture - dirty oil or industrial waste. It is argued that sludge, simply because it is sold, does not become excisable. Sludge is not a result of any process manufactures defined under Section 2(f) of Central Excise Act and therefore does not become exigible. We agree with this contention. 3. In view of what ..... X X X X Extracts X X X X X X X X Extracts X X X X
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