TaxTMI 
TaxTMI 
1997 (5) TMI 108
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....les. The process followed for making the containers has been stated by the appellant in a letter to the Assistant Collector of Central Excise. The appellant melts the ingots, converts them into slabs, rolls them into sheets which are converted into circles. These circles are converted into containers which are sold in the market. The appellant pays duty on the containers manufactured by it in regular course. In the process of manufacturing containers, waste products such as aluminium scrap also come into existence. 2. The Central Excise Authority called upon the appellant to pay duty on the scrap manufactured by it. The appellant was compelled to pay duty on the value of the scrap at the rate of 40 per cent under Tariff Item 27(a)(i....
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....quered and printed. -do- -do- Explanation : I - "Container" means containers ordinarily intended for packaging of goods for sale, including collapsible tubes, casks, drums, cans, boxes, gas cylinders and pressure containers whether in assembled or unassembled condition, and containers known commercially as flattened or folded containers. Explanation : II - In this Item, the expression "Aluminium" shall include any alloy in which aluminium predominates by weight over each of the other metals. 4. The appellant's case is that `aluminium scrap' cannot be described as `aluminium in any crude form'. Aluminium scraps are not really in crude form. In fact, T....
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....ary form of the metal. Sub-item (b) of Tariff Item 27 speaks of `Aluminium Manufactures', namely, plates, sheets, circles, strips, shapes and sections in any form or size not otherwise specified'. There is no dispute that the appellant manufactures circles which have been specifically included in T.I. 27(b) and not T.I. 27(a). `Circles' have not been included in the Tariff Description in T.I. 27(a)(i). That means `circles' have not been treated as `aluminium in any crude form' but `Aluminium Manufactures'. The assessee manufactures the circles and thereafter aluminium containers out of these circles. The scraps are generated while converting circles which are not `aluminium in crude form' into containers which are finished goods. If anythin....
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....e form including ingots, bars, blocks, slabs, (i) billets, shots and pellets. Fifty per cent ad valorem plus Rs. two thousand per metric tonne. Wire bars, wire rods (ii) & castings not otherwise specified. -do- (aa) Waste and Scrap. -do- (b) ........... (c) ........... (d) ........... (e) ........... (f) ........... EXPLANATION I ........... EXPLANATION II .......... EXPLANATION III - "Waste and Scrap" means waste and scrap of aluminium fit only for the recovery of metal or fo....
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....description of `iron in any crude form' in T.I. 25, but in the description of goods under the head `aluminium in any crude form', aluminium scraps were not included in T.I. 27. Even when the amendment was made on 1-3-1989, aluminium scraps were separately taxed and not included in `aluminium in any crude form'. 14. Similarly, in the T.I. 18 dealing with man-made fibres, other than mineral fibres, man-made filament yarns, cellulosic spun yarn, `Non-cellulosic wastes, all sorts' have been specifically included as sub-item (4) of T.I. 18. Sub-item (4) has been explained to include only wastes arising in, or in relation to, the manufacture of man-made fibres (other than mineral fibres) and man-made filament yarns. 15. The obviou....