1995 (11) TMI 155

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....at Bombay. Shri Madhav Rao appearing for the appellants submitted that point to be considered in this case is whether scrap, as such, was liable to excise duty under Tariff Item 27(a) as it stood at the relevant time. He submitted that there were two demands in this case, wherein show cause notice issued on 17-11-1975 for the period December, 1973 to August, 1975 and second show cause notice dated 26-10-1976 was issued for September, 1975. He drew our attention to the relevant Tariff Item 27(a) as it stood at the relevant time in which it was specified that in any crude form (including ingots, bars, blocks, slabs, billets, shots and pellets.) He said that 27(a) was amended by introducing 27(aa) specifying the item Waste and scrap from 1981 ....

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....nly as raw material solely for their process." Therefore "copper in crude form" which describes copper before it is used in the process of manufacture, cannot cover "copper scrap" which arises as a result of the process of manufacture. Copper in crude form cannot therefore include copper scrap. Scrap is brought or sold in the market as scrap and it is not dealt with as copper in its crude form. It may be that copper scrap is used for reprocessing copper; and such reprocessed copper may be used in the manufacture of other items of copper as raw material. But the very fact that this is described as "reprocessed" copper shows that it is not copper in crude form. Therefore, Item 26A(I) cannot include copper scrap and waste. Shri Madhav Rao subm....