2004 (5) TMI 371

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....ant. None, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. -  The issue involved in this appeal, filed by Revenue, is whether benefit of Notification No. 49/97-C.E., dated 1-8-1997 is available to the waste and scrap of iron and steel lying in stock as on 1-9-1997 with M/s. Sarda Steels Industries Ltd. 2. When the matter was called, none was present on behalf of t....

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....ion No. 49/97, the Assistant Commissioner under Order-in-Original No. 27/2000, dated 11-9-2000 demanded the duty and imposed penalty on the ground that Notification No. 49/97 exempts only the waste and scrap generated during the course of manufacture by units working under compounded levy scheme under Section 3A and the waste and scrap lying in balance on 1-9-1997 is not such a waste and scrap; th....

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....ned that the said Para relates to exemption of waste and scrap arising in the course of manufacture of ingots in an induction furnace unit and hot re-rollable product of non-alloy steel in a hot re-rolling mill on which duty is paid under Section 3A of the Act; that Para 4(f) is in fact the Para of the Circular which is applicable as it provides that the waste and scrap lying with the induction fu....

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....and scrap should arise in the course of manufacture of specified products on which duty is paid under Section 3A of the Act. The impugned waste and scrap has arisen during the course of manufacture of goods when the duty of Excise was payable under Section 3 of the Act and not under Section 3A of the Act. Secondly even after the introduction of Compounded Levy Scheme, the duty is payable on these ....