1993 (8) TMI 155

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.... The appellants herein are engaged in the manufacture of steel ingots and castings of iron and steel falling under sub-heading 7206.10 and 7307.10 of the Central Excise Tariff respectively. They availed of modvat credit for the period from 3-4-1987 to 8-6-1987 and 6-11-1987 to 21-2-1988 under Rule 57A on various items including iron and steel and rejected steel ingots and stainless melting scrap falling under erstwhile sub-heading 7206.10 and 7203.20. All these items were re-melting scraps of iron and steel used for the manufacture of steel ingots and casting of iron and steel. Modvat credit was availed of after filing the declaration prescribed under Rule 57G of the Central Excise Rules, 1944 and after the credit was availed of, the inform....

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....steel melting scrap' entitling them to the concessional rate of duty on the manufacture of steel ingots in terms of Notification No. 53/80 as amended. In this regard it is seen that in the relevant Central Excise Tariff Schedule the term "steel melting scrap" was not defined. Hence, as observed by the Supreme Court in the case of Star Paper Mills Ltd. v. CCE [1989 (43) E.L.T. 178 (S.C.)] it would be permissible to refer to the dictionary meaning of the word scrap. According to the Chambers Twentieth Century Dictionary word 'Scrap' means "a small fragment : a piece of left-over food : a remnant : a punched-out picture, cutting, or the like, intended or suited for preservation in a scrap-book : residue after extraction of oil from blubber, fi....

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....ions was that the inputs had not been declared. The appellants have stated that they use the defective steel ingots as inputs and had filed the Declaration No. ESAL - 4/86/609, dated May 6, 1986 (Annexure-A) under Rule 57A in which Iron and Steel scrap had been shown as one of the raw materials and steel ingots and castings as end-products. 8. The learned Assistant Collector has, however, taken the line that rejected steel ingots have not been specifically mentioned as inputs. Hence this declaration was not acceptable. The learned Collector (Appeals) has also taken the view that their contention that rejected steel ingots were nothing but scrap is not sustainable and full and correct description of the inputs was required under Rule 57G.....