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of <h1>Tribunal Rejects Revenue's Appeal on Scrap Goods Duty, Emphasizes Proper Tariff Classification</h1> <h3>COMMISSIONER OF CENTRAL EXCISE, JAIPUR-II Versus JK. INDUSTRIES LTD.</h3> The appeal filed by the Revenue against an Order-in-Original demanding duty on waste and scrap of capital goods was rejected by the Tribunal. The Tribunal ... Scrap Issues:1. Appeal against Order-in-Original demanding duty on waste and scrap of capital goods.2. Classification of scrap items under Central Excise Tariff Act.3. Interpretation of Section 3 of the Central Excise Act regarding levy and collection of duty on excisable goods.Analysis:1. The appeal was filed by the Revenue against an Order-in-Original demanding duty on the waste and scrap of capital goods removed by the Respondents. The Revenue argued that items like scrap of lead acid batteries, electrical items, electrical motor parts, and radiators should be classified under specific headings of the Central Excise Tariff Act and duty should be imposed when these goods are cleared from the factory after use.2. The Respondents contended that for goods to attract duty liability, they must be specified in the Schedule to the Central Excise Tariff Act. The Advocate for the Respondents argued that the scrap items in question were not covered by the Tariff Headings claimed by the Revenue, as those headings only applied to complete goods and not scrap.3. The Tribunal analyzed Section 3 of the Central Excise Act, which mandates the levy and collection of excise duty on excisable goods produced or manufactured in India as per the rates set in the First Schedule to the Central Excise Tariff Act. The Tribunal noted that the scrap items, such as scrap of lead acid batteries, electrical items, electrical motor parts, and radiators, were not specifically covered under any Tariff Headings cited by the Revenue. As the scrap items did not fall within the ambit of any Tariff Headings, the Tribunal concluded that they could not be charged excise duty. Therefore, the appeal filed by the Revenue was rejected.This judgment clarifies the importance of proper classification under the Central Excise Tariff Act for imposing excise duty on goods and emphasizes that scrap items must be specifically covered under relevant Tariff Headings to attract duty liability.
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