TaxTMI 
TaxTMI 
2001 (12) TMI 120
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.... taken from the appellant's balance sheet and other records. The appellants resisted the demands in respect of waste and scrap of iron and steel in the proceedings before the lower authority contending mainly that the appellants were a primary manufacturer of aluminium and that they do not carry out any manufacturing activity on iron and steel. Their submission was that in such a situation the question of excise duty payment on waste and scrap of iron and steel did not arise. The appellants conceded the duty demand of about Rs. 1.32 lakhs in respect of aluminium waste and scrap. Detailed explanation about the source of the iron and steel waste and scrap and as to how they were not liable to duty was also offered in the adjudication proceedi....
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....g to them, all other kinds of waste are not liable to duty of excise at all. With regard to waste and scrap under Sl. No. 2 of the Table, the appellants' explanation is that remnants of duty paid steel arise when duty paid steel brought from outside is used in various parts of the plant for repair etc. Such remnants are re-rollable materials and are not waste and scrap. With regard to waste and scrap at Sl. No. 3, appellants have pointed out that the demolition of old civil constructions in the factory premises, yields iron and steel items, which constituted part of the buildings, and these are retrieved as waste and scrap. These waste and scrap are not the result of any manufacture and are not excisable. With regard to waste and scrap at S....
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....ollings (P) Ltd. v. CCE [1997 (93) E.L.T. 387] (e) CCE v. Electro Steel Casting Ltd. [1999 (114) E.L.T. 243] (f) CC & CE v. Orient Cerwool Ltd. [1997 (94) E.L.T. 546] (g) Modi Rubber Ltd. v. UOI [1987 (29) E.L.T. 502] (h) Wipro Limited v. CCE [2000 (117) E.L.T. 713] (i) Diesel Components Works v. CCE [2000 (120) E.L.T. 648 (T) = 2000 (40) RLT 641] 5. As against the above submissions of the appellants, ld SDR has pointed out that from 1994 onwards capital goods are eligible for Modvat credit and it was required to be verified as to whether the wastes and scrap in question arose from capital goo....
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.... the impugned order, Commissioner observed : "No dispute is involved in respect of the scrap and waste originated during the course of manufacture of parts but the dispute only restricts to the scrap and waste originated in the course of the dismantling of the locomotives. Admittedly, the scrap and waste originated during the course of dismantling of the locomotives is different and distinct item from the locomotives. Such scrap of iron and steel are classifiable under Heading No. 72.04 of said Schedule and that of aluminium is classifiable under Heading No.76.02. In view of this I am of the opinion that the waste originated during the course of dismantling of the locomotive is also excisable goods and the process of dismantling amounts ....