2004 (1) TMI 232

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....ected and removed from the manufacturing stream and sold/disposed as 'Spent Catalyst'. 2. (a)    The appellant had imported the catalyst in July 1997 for initial charge under the EPCG scheme. This scheme EPCG i.e. Export Promotion Capital Goods imports scheme permitted the imports of Capital Goods at a concessional rate of duty with an inbuilt export performance condition. No credit could be availed on the imported goods since no CVD was paid on the import as Capital Goods. (b)        The appellants, after these Capital goods catalyst were spent, sent the same on challans to the job worker for recovery of the metals i.e. Platinum. No duty was paid on such removals by the appellants. On....

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....t has dismissed Revenue appeal [2003 (153) E.L.T. 491 (S.C.) = 2003 (55) RLT 745] in Markfed case. (ii)        A catalyst by definition is not raw material, if it effierces due to usage or process undertaken is lost and a new emerging entity results that cannot be termed as raw material evolving and resulting into a new entity. Therefore Spent Catalyst emerges not as a result of 'manufacture'. When the result is not of manufacture, the levy under Section 3 of the Central Excise Act, 1944 would not be attracted merely because of, as campaigned by the ld. DR, on the ground that it matches a tariff definition under chapter 71 when read with HSN notes and the entity is marketable. (iii)   ....

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....) E.L.T. 648 (T) = 2000 (40) RLT 641] which has been followed by a catena of decisions by this Tribunal. (v)        The ld. DR's reliance on the case of Ashish Steel Pvt. Ltd. [1999 (106) E.L.T. 269] and the Apex Court dismissing the civil appeal filed by the assessee [1999 (108) E.L.T. A180 (S.C.)] will not help the Revenue's case. Ashish Steel case was on ship breaking and even if ships are considered as Capital Goods, entity arising out of ship breaking are brought in the exigibility net vide specific entry and note in the Central Excise Tariff, as has been distinguished in the Diesel Components Works case [2000 (120) E.L.T. 648 (T) = 2000 (40) RLT 641] para 10 by the bench. Therefore it is to be hel....