TaxTMI 
TaxTMI 
1985 (1) TMI 322
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....alling under T.I. 52 of the Central Excise Tariff. The Inspector, Central Excise, Pathankot visited the factory on 19-11-81 and asked the appellants to furnish figures of sale from the factory during 1980-81. The appellants submitted the figures which included the following items :- Goods Value of sales Bright bars and Bright bar scrap Rs. 3,18,194.96 Rivets Rs. 2,26,183.70 CI Castings Rs. 2,42,016.25 Washers Rs. 8,927.38 Scrap Rs. 65,239.40 Nuts and Bolts Rs. 14,63,686.87 Rs. 23,24,248.56 3. On 15-12-81 a show cause notice was issued on the ground that the appellants have cl....
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.... The bright bar still remained a bar and continued to fall under the same sub-item (ia) of tariff item 26AA of the Central Excise Tariff. The total value of the bright bar scrap and other scrap worked out to Rs. 3,83,433.96. The learned counsel stated that if this clearance is deducted, then the value of clearances of the goods excisable would come to Rs. 19,40,814.60 well within the limits prescribed in the Notification No. 80/80, dated 19-6-80 and that the appellants would be entitled to the benefit of exemption during the relevant year (1981-82). The appellants also relied on the rulings reported as 1977 E.L.T. J 199 (Union of India and Others v. Delhi Cloth and General Mills Co. Ltd.) and 1983-E.L.T.-1582 (State of Tamil Nudu v. Pyare L....
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....r from the round bar is a mere process. The bringing into existence of a new product known commercially as 'bright bar' conclusively determines that it is not merely a process but a manufacture. The Collector has rightly held that bright bars are commercially and technically different from round bars and the conversion of round bars into bright bars would, amount to manufacture. 8. The learned counsel for the appellants also stated that the ends of the bright bars are cut to make the pieces symmetrical and the scrap so obtained was not excisable. We do not accept this contention. Scrap is a distinct excisable item under First Schedule. So the scrap that arises during the conversion of bright bars, from round bars, would be excisable....
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....kar Industries, Bombay v. Collector of Central Excise, Bombay) [1984 (17) E.L.T. 402]. The Tribunal considered the earlier decision of a Division Bench of the Tamil Nadu High Court (Madras State) Handloom Weavers Co-operative Society Ltd. v. Assistant Collector of Central Excise, Erode (1978 E.L.T. J 57) and the decision of the Delhi High Court in Vishal Andhra Industries v. Union of India (1983 E.L.T. 2265) overruling the earlier decision in Sulekh Ram and Sons v. Union of India others. (1978 E.L.T. J 525). The Tribunal rejected the contention that the term 'excisable goods' will not cover exempted goods. We agree with the reasonings in that decision. In the light of the above decision, we are of the view that the plea of the appellants to....
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....ed counsel for the appellants that the term 'cleared' would mean only clearances on payment of duty. It was rightly pointed out by Shri A.K. Jain that the Explanation to Notification No. 80/80 would be redundant if the term 'clearance' should apply only to clearances on payment of duty. 14. The appellants claim reduction of amounts paid by them towards insurance and freight. The Collector has rejected the claims on the ground that the appellants have not produced the necessary documents. In respect of freight, even now no documents have been filed. But with regard to insurance, the appellants have produced the insurance policy issued by the United India Fire and General Insurance Company. A sum of Rs. 1,085/-has been paid towards in....