TaxTMI 
TaxTMI 
2003 (4) TMI 473
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....ng excisable goods specified under the notification, in two different capacities. On the one hand, they manufactured specified goods and cleared the same to their customers, availing the benefit of full exemption up to the aggregate value of first clearances (in a financial year) of Rs. 30 lakhs. On the other hand, as job workers for other principal manufacturers, they manufactured specified goods and cleared the same to such principal manufacturers without payment of duty in terms of Notification No. 214/86-C.E., dated 25-3-86 (as amended), whereunder excisable goods manufactured by a job worker out of raw materials supplied by a principal manufacturer were exempted from payment of duty of excise but any waste and scrap that might arise in....
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....y, from whatever processes, were admittedly specified goods under Notification No. 1/93-C.E. (as amended). It was immaterial that the goods were cleared on payment of duty. The value of the clearances of the waste and scrap was therefore liable to be excluded from computation of the aggregate value of clearances for the purpose of exemption under the notification. Ld. Consultant relies on the decision of the Tribunal in EL.P.EM. Industries v. CCE - 1989 (43) E.L.T. 599 wherein, dealing with similar Notification No. 175/86, this Tribunal had held that, if a manufacturer manufactured excisable goods falling under more than one Tariff Heading, he would be eligible to avail full exemption up to Rs. 30 lakhs subject to the condition that clearan....
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....n under the notification. The assessee was, therefore, entitled to the benefit of exemption (subject to aggregate value limit) in respect of such waste and scrap under Notification No. 1/93-C.E. To the extent such waste and scrap was exempt, the assessee had no liability to pay duty thereon. When they paid duty on their own volition, they did so without prejudice to the Revenue. Had they treated such waste and scrap as exempt from duty under Notification No. 1/93 (which they were entitled to) and cleared the same without payment of duty, they could not have excluded the goods from computation of aggregate value. Now they cannot turn around and say that the value of such waste and scrap cannot be included in the aggregate value of clearances....
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....t returned to the principal manufacturer) on payment of duty at normal rate at any time during the financial year. There was no "explanation" or other provision in Notification No. 1/93-C.E. which attracted these waste and scrap for reckoning in the computation of the aggregate value. Hence the clearances of these goods stood excluded from the purview of the "first clearances of specified goods" under Notification No. 1/93-C.E., unlike the waste and scrap of the first category. In other words, the value of clearances of the waste and scrap of the second category was not to be included in the computation of the aggregate value limit of Rs. 30 lakhs under Notification No. 1/93-C.E. The impugned order will stand modified to this extent. ....