2024 (1) TMI 770

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.... and penalty. 2. Despite service of notice upon the respondent, no one has appeared on behalf of the appellant. This appeal is, accordingly being decided after hearing Shri Bhagwat Dayal, learned authorised representative appearing for the department and after perusing the records. 3. It transpires that the respondent is engaged in the manufacture of lead ingot and lead rods. During the course of audit, it was noticed that the respondent had purchased and segregated the scrap of used batteries, telephone sets and other e-wastes and extract scraps of PVC, plastic, hard rubber, iron, copper, aluminium, brass and lead through a manual process. The extracted lead is used to produce lead ingot and lead rods, which were cleared on payment of Ce....

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....of scrap and no different commodity has emerged. Further, the segregation was a manual process and the purpose of segregation was to recover the desired input and therefore the process was not incidental or auxiliary to manufacture of the final product i.e., lead ingots or lead rods. The case of Satnam Overseas v. CCE, New Delhi [2015 (318) ELT. 538 (S.C.)] also supports the contention of the appellant as it deals with a mixture and an independent ingredient of the mixture just like the case of the appellant. The case of Servo Med Industries Pvt Ltd v. CCE, Mumbai [2015 (319) E.L.T. 578 (S.C.)] is also applicable since every time the appellant extracts one metal or material, it cannot be said that every time a manufacturing process has take....