2005 (1) TMI 491

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.... Shri R.K. Chandan, JDR, for the Respondent. [Order per : T. Anjaneyulu, Member (J)]. - The main issue involved in this appeal is that whether the activities of dismantling, breaking and cutting of the ships resulting in realization of ferrous and non-ferrous scrap of the iron and steel, copper and brass amounts to manufacture and attracts Central Excise duties? 2. M/s. Hariyana S....

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....e appellants have replied in the following manner :- (a)     The scrap generated out of the duty paid inputs are exempted under Notification No. 204/1993-C.E., dated 1-8-1983, as such no Excise Duty is leviable on waste and scrap of iron and steel. The scrap had been cleared on payment of customs duty, inclusive of CVD equal to Central Excise duty leviable under Tariff Item ....

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....ld as follows :- (a)     The ship breaking activity includes the activities of dismantling, breaking and cutting of the ship, which results in production of the ferrous and non-ferrous scrap of iron and steel, copper/brass, lead, tin and aluminium, etc. Thus, the ship breaking activity amounts to manufacture under Section 2(f) of the Central Excise & Salt Act, 1944. (b)&n....

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....stly, duty demand against the appellant is confirmed as proposed in the Show Cause Notice. 6. After hearing both sides and considering the Circular of C.B.E. & C's and Ministry's telex F No. 139/49/1986-C.X. 4, dated 8-4-1987 and orders passed by the Gujarat High Court consequent upon filing Special Civil Application No. 98/1993 by the Iron & Steel Scrap Association and its members and las....