TaxTMI 
TaxTMI 
1996 (3) TMI 136
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....xcises & Salt Act, 1944 (for short "the Act"). 3.The petitioners state that for the manufacture of the Electrical Stampings, the petitioners purchased duty paid Hot Rolled and Cold Rolled Steel Sheets. The said steel sheets are assessed to the Central Excise Duty at the rate prescribed under Tariff Item 26AA of the erstwhile First Schedule to the Act. The petitioners are availing of proforma credit of the Central Excise Duty on the above steel sheets under Notification No. 95/79, dated 1st March, 1979. 4.According to the petitioners, in the manufacture of Electrical Stampings, waste and scrap is generated at three stages :- (i) At the stage of the cutting of the steel sheets into smaller sheets (called left overs or industrial scra....
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....ated that the petitioners ought to have paid the duty at the rate of Rs. 650/- per M.T. under Serial No. 6(ii)(b) of the Notification No. 55/80 at Ex. B. 7.The petitioners contested the said three Show Cause Notices issued under Section 11A of the Act on the ground that they were liable to pay Central Excise Duty on the waste and scrap arising in the manufacture of the Electrical Stampings under Tariff Item No. 26 of the erstwhile first schedule to the Act and read with the Notification No. 147/1977 at the rate of Rs. 330/- per M.T. Replies to that effect were filed on 2nd May, 1983 at Ex. G and on 29th July, 1983 at Ex. H. 8.By an order dated 25th January, 1984 at Ex. I, the Assistant Collector of Central Excise rejected the contenti....
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....of the Collector passed on 14th July, 1986 at Ex. L. The order passed by this Court on 7th August, 1987 in Appeal No. 963 of 1984 reads as under : "On Mr. Gandhy's application, the appeal is allowed to be withdrawn. The appellants shall be at liberty to challenge the order of the Collector of Central Excise (Appeals) dated 14th July, 1986 if they are otherwise entitled to do so and the respondents will be at liberty to raise all contentions in reply. No order as to costs." 12.Pursuant to the above, the present Writ Petition has been filed challenging the order dated 14th July, 1986 at Ex. L. The petitioners also seek the refund of the differential duty paid between the rates prescribed under Notification No. 147/77 i.e. to say R....
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....of the Respondents. The Authorities below have clearly held that what was cleared by the petitioners was waste and scrap. It was not disputed by both the authorities below that what was cleared by the petitioners was not waste and scrap. A perusal of the two orders at Ex. I and L clearly shows that what was cleared was scrap and not Cold Rolled Sheets so as to attract duty at the rate of Rs. 650/- per M.T. 16.In view of the above position, we are of the opinion that once it is found by both the authorities below that what was cleared by the petitioners was waste and scrap, the appropriate rate of duty payable on the said waste and scrap can only be under Tariff Item No. 26 of the erstwhile first schedule to the Act read with Notification....