2000 (12) TMI 333

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....msp;Heard learned JDR and persued the appeal papers. 3.  The issue involved in these appeals is already covered by the decision of the Tribunal relied upon by the respondents. In this case the Tribunal held that : "We have considered the submissions of both the sides. Notification No. 49/97-C.E., dated 1-8-1997 exempts waste and scrap, falling under the Schedule to the Central Excise Tariff Act, arising in the course of manufacture of ingots and billets of non-alloy steel in an induction furnace unit, on which the duty of excise is paid under Section 3A of the Central Excise Act. It is admitted fact that runners and risers had arisen during the process of manufacturing the ingots as this fact is mentioned in the show cause notice....

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....at all the respondents had used them for the manufacture of non-alloy steel ingots and satisfy the definition of waste and scrap as given in Note 6(a) to Section XV of the Central Excise Tariff. The Tribunal again decided the classification of the runners and risers by the use they were put to in the case of Hariganga Alloys & Steel. The Tribunal held as under :- ".............the runners and risers which are fit for rolling were correctly classifiable under Heading 72.06. In as far as the runners and risers which were in such a form which could not be subjected to rolling and are fit only to the recovery of metal alone will be classifiable under Heading No. 72.03 (Now 72.04) as waste and scrap." The Tribunal again observed in Bengal ....

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....mentioning that the Notification does not mention Heading 72.04 after referring to waste and scrap. The scope of waste and scrap mentioned in the notification is wide enough to cover all waste and scrap, falling under the Schedule to the Central Excise Tariff Act. Even if runners and risers are treated as re-rollable scrap, falling under Heading 72.06 of the Central Excise Tariff though there is nothing on record to show that they were fit for re-rolling, the exemption provided under Notification cannot be denied as the exemption is not restricted to waste and scrap falling under Heading 72.04 only. The intention of the Central Government is also evident from circular No. 327/43/97 CX., dated 1-8-1997 wherein it was mentioned as under :- ....