2008 (12) TMI 341

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....red M.S. and C.I. scrap without payment of duty, which were generated during the manufacture of dies, jigs, fixture and tooling etc. It is observed that these scraps are chargeable to duty or may be exempted if consumed captively in the factory premises and the scrap so generated classified under sub-heading 7204.90 of the Schedule to the Central Excise Tariff Act, 1985. Commissioner (Appeals) observed that M.S. and C.I. scrap generated during the manufacture of dies, jigs, fixtures and tooling etc. and removed without payment of duty in respect of the inputs on which no Modvat credit was availed by the respondents and would not be liable to duty. 2. Learned DR on behalf of the Revenue reiterates the grounds of appeal. He relied upon the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....oduct only. 23. In our view, it is clear from the record, that this category of scrap is a scrap generated by cutting of plates, sheets, as noticed by the learned Commissioner (Appeals), and obviously also welding electrodes, Mild Steel, Mild Steel Channel, M.S. Angles, beams, cutting tools etc., and this scrap is generated during the course of repair and maintenance of plant and machinery. May be that the parts of machinery, which are replaced, and emerge as scrap may not be excisable, and have been found to be not excisable, but then, the part which is replaced, either as a whole, or in part, is very much a product, coming into existence, as a result of manufacturing process, by using the raw material, being plates, sheets, welding ele....