2017 (7) TMI 481

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.... & Scrap'. The Department was of the view that the appellant is liable to pay duty on such waste and scrap as these are leviable to duty under Chapter Note 8 (a) of Section XV of Customs as well as Central Excise Tariff Act. A Show cause notice was issued placing the above allegations and proposing to demand duty, interest and also to impose penalties. After due process of law, the adjudicating authority confirmed the duty demand of Rs. 54,197/- along with interest and imposed equal penalty. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, Ld. Counsel Shri S. Muthu Venkataraman, submitted that the appellant has cleared only components of machinery due to wear and tear of the machi....

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....of the tariff entry in the Schedule to the Tariff Act and are manufactured goods in the terms of Section 2(f) of the Act. Therefore, the conditions contemplated under Section 2(d) and Section 2(f) has to be satisfied conjunctively in order to entail imposition of excise duty under Section 3 of the Act. The manufacture in terms of Section 2(f) includes any process incidental or ancillary to the completion of the manufactured product. This any process can be a process in manufacture or process in relation to manufacture of the end product, which involves bringing some kind of change to the raw material at various stages by different operations. The process in manufacture must have the effect of bringing change or transformation in the raw mat....