1996 (8) TMI 318

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....dvat credit facility for the inputs received by filing appropriate declaration under Rule 57G of the Central Excise Rules, 1944. They were however, served with 7 Show Cause Notices raising a total demand of Rs. 56,06,745.30 ps. proposing to disallow Modvat benefit of the same on various items, inter alia alleging that (i) the appellants availed of Modvat credit of duty paid on defective stainless Ingots/Flats falling within T.I. 7220.10 or 7218.00 on ground that they were not the inputs declared and the declaration filed by them was for waste and scrap falling within T.I. 7204.20 and hence were not entitled to Modvat credit and (ii) availment of deemed credit benefit vide Govt. Order dated 12-7-1990 on Copper and Aluminium scrap was erroneo....

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.... on both the counts is basically on the ground that they are not waste and scrap and has been referred to Section XV of the Central Excise Tariff and has referred to Section Note 6(a) where under the heading "Waste and Scrap" it is mentioned that "Metal waste and scrap from the manufacture, or mechanical working of metals and metal goods definitely not suitable as such because of breakage, cutting up, wear or other reasons" and has pleaded that any item which is "definitely not usable as such" falls within the category of scrap and waste. Amongst others, the ld. Advocate has referred to the Tribunal decision in Plaza Steels and Alloys Ltd. v. Collector - 1993 (68) E.L.T. 213 (Tribunal) = 1995 (26) ETR 833. The ld. Advocate has further plead....

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....d waste. While rejecting the claim for Rs. 2,37,271.82, as Modvat credit, the ld. Adjudicating Authority has observed that the assessee have not declared ingots and flats as scrap. Even assuming that to be so, unusable ingots and flats have to be taken as waste and scrap, vide Section Note reproduced earlier, the generic description of waste and scrap given in the declaration has to be taken as one which is in confirmity with the phrase as understood under the Tariff Act. The Tribunal decision referred to by the ld. Advocate for the Appellant also mentions that unusable ingots and flats are to be treated as waste and scrap. Denial of Modvat credit to the extent of Rs. 2,37,271.82 therefore does not appear justified and the order to that ext....