CEGAT Rules in Favor of Appellant: Scrap Remains Ferrous, No New Product Emerges

The Appellate Tribunal CEGAT, Mumbai ruled in favor of the appellant engaged in compacting ferrous scrap and recovering tin through electrolysis, holding that the scrap remained ferrous and no new product emerged. Confiscation and penalty were set aside as duty was not demanded on the tin, with the department allowed to recover duty if applicable by law.

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The Appellate Tribunal CEGAT, Mumbai ruled in favor of the appellant, who was engaged in compacting ferrous scrap and recovering tin from it through electrolysis. The tribunal accepted that the scrap remained ferrous despite tin recovery, and no new product emerged. Duty was not demanded on the tin, so confiscation and penalty were set aside. The department may recover duty on the tin if applicable by law.

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