2008 (12) TMI 739

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....ce President and P. Karthikeyan, Technical Member For the Appellant: N.J. Kumaresh, SDR For the Respondent: V. Panchanathan, Adv. JUDGEMENT Jyothi Balasundaram:- 1. The respondents herein are small-scale manufacturers manufacturing electric motors, parts of power driven pumps in Unit-I and iron castings in Unit-II. Unit-I manufactures electric motors bearing brand names of others; n....

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....th sides. 3. It is the contention of the Revenue that the respondents having availed MODVAT credit on inputs used in the manufacture of electric motors bearing brand names of others in Unit-II, other goods manufactured either in Unit-I or Unit-II are not eligible to the benefit of SSI exemption. It is also the case of the department that scrap being the result of manufacture, duty is required t....

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.... has been held to be the result of manufacture, the respondents are required to have cleared the scrap on payment of duty. The demand on scrap is only to the extent of 5% as the value of clearances of branded electric motors constituted only 5% of the total turnover of the respondents. We, therefore, hold that the respondents are liable to pay duty of 5% of the quantity of scrap diverted for the a....