2002 (9) TMI 345

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....tures up to 1450OC. The severe temperature conditions in the kiln necessitate protection of the kiln shell against heat, which is achieved by lining the inner sides of the kiln with refractory fire bricks. This refractory lining has the further advantage of preventing excessive heat loss to the surroundings by virtue of its insulating characteristics. The fire bricks would lose their resistance over a period of 3 to 4 months of constant use whereafter they would require to be removed for fresh lining of the kiln-shell with new fire bricks. During the period March, 1995 to September, 1997, the appellants removed the used fire bricks as waste and scrap from their Rewa Plant without payment of duty. The department issued 4 show cause notices p....

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....he scope of the show cause notices wherein there was no proposal to demand/ recover duty of excise in terms of Rule 57-S(2)(c). Ld. Counsel submits that the fire bricks were not removed as such but removed as waste and scrap in broken/powdered form which would not attract the provisions of Rule 57-S(2)(b). Counsel submits that waste and scrap of fire bricks are not goods specified under any Heading of the Central Excise Tariff and, therefore, no duty of excise is leviable on the item. He submits that waste and scrap are liable to duty only if the same arise out of a process of manufacture and are specified under the Schedule to the CETA. The Counsel relies on the following and other decisions in support of his submission :- (1)  ....