Dismantling scrap from condemned machinery is not excisable waste and scrap under the tariff note.

Scrap arising from dismantling condemned, overhauled or used machinery is not waste and scrap for excise purposes under Section Note 8(a) to Section XV when it is not generated in a manufacturing process. Applying cited precedent, the tribunal treated the statutory definition as confined to material answering the tariff description of waste and scrap, and held that dismantling scrap from machinery and equipment does not satisfy that test. The result was that non-dutiability of the dismantling scrap was sustained and the Revenue challenge failed.

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Issues: Whether waste and scrap generated from dismantling of condemned machinery and equipment falls within the definition of waste and scrap under Section Note 8(a) to Section XV.

Analysis: The scrap in question arose from dismantling of overhauled, used and condemned machinery and equipment, not from a manufacturing process. The reasoning in the cited decisions was applied, and it was held that such material does not answer the statutory description of waste and scrap for excise purposes.

Conclusion: The scrap generated from dismantling of condemned machinery and equipment is not covered by the definition of waste and scrap under Section Note 8(a) to Section XV, and the Revenue's challenge fails.

Final Conclusion: The order confirming non-dutiability of the dismantling scrap was sustained and the Revenue appeal stood rejected.

Ratio Decidendi: Scrap arising from dismantling condemned or overhauled machinery, and not from the manufacturing process, is not excisable waste and scrap under the relevant tariff note.

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