TaxTMI 
TaxTMI 
2001 (2) TMI 460
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....7-1991, and (ii) Scrap Oxide Lump Grade C-74% (Serial No. IV of Classification List No. 6/90 w.e.f. 20-3-1990 and Classification List No. 12/91 w.e.f. 25-7-1991). In their Classification List filed under protests, the appellants had sought classification of both these products under Heading No. 78.02 of the Central Excise Tariff (refer page 29 and 33 of the paper book). The Assistant Collector of Central Excise who finalised the provisional assessment with regard to these two products classified the same under Heading No. 26.20 of the Central Excise Tariff. On appeal filed by the Revenue insofar as these two products were concerned, the Collector of Central Excise (Appeals), Pune, classified them under Heading No. 78.02 of the Tariff. The a....
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....t. He referred to Section Note 4 of Section XV wherein it is explained that any reference to metal includes a reference to alloys, and concluded that metal waste and scrap as defined in Section Note 6 would include waste and scrap arising from the manufacture of metal alloys also. He held that these two categories of waste were classifiable under Heading No. 78.02. 4. The raw material of the appellants was the lead, classifiable under Chapter 78 of the Tariff. Lead waste and scrap was classifiable under Heading No. 78.02 of the Tariff. The waste and scrap has been defined under Section Note 6 in Section XV of the Tariff as under - "Waste and Scrap - Metal waste and scrap from the manufacture or mechanical working of metals, and m....
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.... According to the Harmonised Commodity Description and Coding System (HSN) Explanatory Notes, the ash and residues of Heading No. 26.20 result from the treatment of ores or intermediate metallurgical products (such as mattes) or from electrolytic, chemical or other processes which do not involve the mechanical working of metal. The mechanical working is acting or doing by physical, not chemical means (refer page 1038 of Chambers Dictionary, New Edition). 5. As has been mentioned above, insofar as these two products were concerned, the appellants had shown their classification under Heading No. 78.02 of the Tariff. In their communication dated 19-12-1990, the appellants have explained that the Scrap Oxide Lump Grade B 80.14% arises f....
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....ng various types of manufacturing process. Therefore the same cannot be considered as being generated as "Ash & Residue". In order to appreciate our above stand we draw Your Honour's kind attention to Chapter No. 3 to Chapter 26 which read as under : "3. Head No. 26.20. Applies only to Ash and Residues of a kind used in industry either for the extraction of a metal or as a basis for the manufacture of chemicals compounds of metals". We further draw Your Honour's kind attention to the definition of "Waste and Scrap" as enumerated at Section Note 6 (a) to Section XV which reads as under :- "6. In this section the following expression have the meaning hereby assigned to them. (a) Waste and Scraps. Metal Waste a....