TaxTMI 
TaxTMI 
2016 (12) TMI 1114
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....(RFPL) and appeal No. E/75216/14 has been filed by appellant Shambhu Nath Shah who is the Director of RFPL. 2. Sh. B. N. Chattopadhyay (Consultant) appearing on behalf of the appellants argued that RFPL is the manufacturer of Lead ingots and Alloy ingots of various grades falling under CETH 7801 of the first schedule to the Central Excise Act 1985. That apart from manufacturing lead alloy ingots from their own raw materials RFPL is also making such lead ingots of various grades from waste & scrap, dross, sump paste, lead sludge, lead dust, scrap oxide received from M/s Exide Industries Ltd. (EIL) under Rule- 4(5) (a) of the Cenvat Credit Rules 2004. That the said raw materials are received by RFPL under Job work challans & are sent back to....
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....as per stander input output norms, when calculating the yield of the finished Alloy Lead ingots when the materials received by the appellant are not standared waste / scrap and yield is much less as per purchase orders of EIL. That only due to erroneous ratio of input-output taken by investigation excess production has been calculated when nothing has been clandestinely cleared as no such seizure of alleged clandestine removal has been made by the investigation. Input Output Norms under C1195 read with ISRI scrap Specification ratio of 1: 1.07 kg will be applicable to highly refined scrap of Radio, Rakes & Relay type of stander scraps & not to the inferior scraps received by the appellant RFPL from EIL. 3. Sh. K. Choudhari Suptd (AR) appea....
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....ed back to the Appellants in the form of ingots, which is then further processed in the Appellants' unit to manufacture flats, strips, rods, which are cleared on payment of duty. Thus there is absolutely no loss of any revenue to the Government. 8. The waste and scrap generated are the remnants emerging as a necessary consequence of the manufacturing activity of cold rolling and cold drawing of copper bar undertaken by the appellants for bringing out the final product. These waste and scrap generated during the process of manufacture instead of being disposed of in the market, is being recycled and re-converted into copper bars, by following the procedure of Rule 4(5)(a) as the appellants do not have any facility for such reconversion. The....
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....(2) is followed." In the same case, it has been further held that - "Commercial prudence and technological feasibility would induce a manufacturer to reconvert, reprocess, recondition and otherwise deal with intermediate goods, by-product, scrap, refuse, waste, etc. to obtain maximum targeted production of the final product by utilizing the facilities available in his premises or by sending them out on job work to other places. Only when final product is no longer profitable or technologically possible, a manufacturer would treat such resultant stage of by-product, refuse, scrap to be no longer useful and therefore, a waste." 10. In view of the above findings of the Tribunal, there is no question of holding scrap as final product and di....
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..... Both the lower authorities have come to this conclusion after considering all the records of the case before them. 7. Revenue's claim that benefit of Notification No. 214/86-C.E. cannot be made applicable to 'waste' is incorrect as the said notification applies for the goods manufactured by a jobworker on jobwork basis and to be used in or in relation to the manufacture of final products on which duty of excise is leviable whether in whole or in part. In the case in hand, it is undisputed that the plastic waste and scrap which gets generated during the manufacture of final products are sent to jobworker and received back as granules which are further consumed in the manufacture of final products. On the face of such factual matrix, in ou....
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....ad is with respect to standard lead scraps like ISRI Radio, Rakes, and Relay etc. Scrap Specifications Circular 2013 by Institute of Scrap Recycling Industries (ISRI) has described scraps like Radio, Rakes & Relay as follows:- "-Radio MIXED HARD/SOFT SCRAP LEAD Shall consist of clean lead solids, free of other materials, such as drosses, battery plates, lead covered cable, collapsible tubes, type metals, aluminum, zinc, iron and brass fittings, dirty chemical lead and radio- active materials. Review packaging specifications and regulatory status pertaining to shipping with buyer prior to sale. -Rakes BATTERY LUGS To be free of scrap lead, wheel weights, battery plates, rubber and/or plastic case material and other foreign material. A mi....