2010 (1) TMI 1059

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.... appeal by the Department against the order of the Commissioner (Appeals) No. 50-CE/BPL/07-08 dated 12-7-2007 by which the order of the original authority dated 6-3-2006 which was in favour of the respondent was upheld. In other words, the Department has filed this appeal against the concurrent finding of both the authorities below which are in favour of the assessee. 2. Heard both sides. 3. The....

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.... Learned DR reiterates the grounds of appeal. He submits that the "Metal waste and scrap" as per Section Note 8 to Section XV of Central Excise Tariff Act, 1985 means metal waste and scrap from the manufacture or mechanical working of metal and metal goods. Therefore, scrap of CRGO sheets cleared by the respondents has to be treated as CRGO sheets only and accordingly, the demand under Rule 3(5) h....

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....e requirement is seen then sheets are cut to meet the design. The laminations/sheets which are left as cuttings are sent to the scrap area and cleared from the factory as M.S. waste and scrap. The laminations/sheets cut to the specified design also sometimes develop defects during the manufacturing processes such as non-uniform edges, bends, kinks and rusting due to handling and therefore, they ar....

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....ing the process of manufacture and they are no longer fit to be used for the manufacture of transformer core. For the respondent they are nothing but waste and scrap and if after clearance certain manufactures find some use for it, the respondent cannot be faulted for this. As per Note 8 to Section XV of the Central Excise Tariff Act, 1985, metal waste and scrap from the manufacture or mechanical ....