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TMI Blog2004 (7) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... odvat Credit of the duty paid on inputs under Rule 57A of the Central Excise Rules, 1944; that during the course of manufacture of final products, waste and scrap is generated; that they were sending the same to the job workers under the provisions of Rule 57F(3) of the Central Excise Rules for getting re-processed granules manufactured, which were received back by them for further use in the manufacture of their final products; that a show cause notice was issued to them for demanding the duty on waste and scrap as well as the duty on the processed granules manufactured by the job workers; that the Assistant Commissioner, under the Order-in-Original No. 17/98, dated 30-3-1998 dropped the further proceedings; that, however, on appeal, filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered as inputs or partially processed inputs since the inputs had already been converted into finished products when the waste and scrap arose and as the waste and scrap are neither inputs nor partially processed inputs, they cannot be removed without payment of duty under the provisions of Rule 57F of the Central Excise Rules. She, further, mentioned that the Tribunal has held in the said decision that the waste and scrap was required to be removed on payment of appropriate duty; that the South Zonal Bench had distinguished the decision of the Larger Bench by observing that the matter before the Larger Bench relates to the waste in regard to metals, in respect of which Note 8(a) to Section XV, wherein the waste and scrap has been defined ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal/commercially feasible manner be converted to a final product or desired to be converted further. Thus what would be 'waste' for a manufacturer, may not be a 'waste' in the case of another manufacturer, even in the case of same kind of goods."After interpreting the word 'waste' the Larger Bench of the Tribunal held that inputs, semi-processed, fully processed or converted into any other stage or further form, called by any name, would be covered by the provisions of Rule 57F(2) used, inside or outside the Modvat credit availers facilities i.e. on job work, provided job work procedures are followed, such movements would be permissible as long as the manufacturer availing the Modvat desires. With due respect, we observe that the decision o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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