1994 (12) TMI 73

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....2.Since facts are not in dispute, and the duty is sought to be levied on scrap obtained by the appellant in course of manufacture of iron and steel products and supplied by it to M/s. Tata Yodogawa Ltd. on payment of duty for conversion of scrap into ingots after re-melting which was actually re-melted and re-used by the appellant as ingot, it is appropriate to extract the two entries relating to steel ingots and iron or steel products : "26. - Steel Ingots including Steel Melting Scrap Rs. 100 per metric tonne." 26AA. - Iron or steel products, the following namely:- (i) Semi-finished steel including blooms, billets, slabs, sheet bars, tin bars and hoe bars. ............................. ............................ ....

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.... of its size, therefore, it did not attract levy under Item 26 but under Item 26AA being something like sub-standard goods. 3.When the matter was pending in appeal the Assistant Collector of Central Excise wrote a letter to the Director of Inspection (Metallurgical), Jamshedpur, requesting him to give his views whether the scrap sold by the appellant under agreement to different parties for manufacturing steel ingots out of the scrap could be described as re-melting scrap as the Department on examining the invoices found that maximum length of such scrap of various products like rails, billets, plates, lee, channels, angles, beams etc. were only upto 1.5 metres and such scraps, according to Iron and Steel Controller's specification of 19....

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....te'. But it may be used for re-rolling or re-melting for bringing out raw material to be used for producing finished products. Under Entry 26AA what is exigible to duty is semi-finished steel including blooms, billets, slabs, sheet bars etc. Semi-finished may mean between raw material and finished products. But it cannot be described as scrap. A sub-standard bloom or billet is steel bloom or billet. But the scrap of billet or bloom would not be the same thing as semi-finished product. In the commercial sense, scrap and semi-finished products cannot be understood in the same sense. The attempt of the Department, therefore, to levy duty on scrap under Item 26AA was not correct. Melting scrap is defined as :- "Scrap which cannot be used ....