TaxTMI 
TaxTMI 
2004 (8) TMI 195
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....ring the course of manufacture of their final product, as waste and scrap under CET sub-heading 7204.00 on payment of duty as applicable to waste and scrap for the period November, 1991 to March, 1994. In view of the fact that the cut sheets were sold to manufacturers of similar final products (although of smaller sizes) and that they were being sold at the prices much higher than the prevailing market price for ferrous waste and scrap, the department alleged that the cut sheets were required to be cleared on payment of duty applicable under Chapter Headings 7208, 7209 and 7211. On this basis, duty demand of Rs. 91,24,646/- being short payment of duty on 4,876.534 M.Ts. of cut sheets (cleared on payment of duty of Rs. 54,90,103/- and on whi....
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....d heavily upon the Tribunal's decision in Bajaj Auto Ltd. v. Collector of Central Excise, Pune [1995 (75) E.L.T. 382 (Tri.)] and Bajaj Tempo Ltd. v. Collector of Central Excise, Pune [1997 (89) E.L.T. 752 (Tri.)] to support his contention that not only are the cut sheets not waste and scrap within the meaning ascribed thereto under the Tariff as amended, but they are sheets and therefore, duty was payable at the rate at which credit was taken viz. at the rate payable on sheets. However, we find that the Bajaj Tempo Ltd. decision follows the Tribunal's decision in Bajaj Auto Ltd. as well as the Tribunal's decision in L.M.L. Ltd. v. CCE, Kanpur [1989 (44) E.L.T. 119] which has been reversed by the Apex Court in 1997 (94) E.L.T. 273 (S.C.) (L.....
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.... left over inputs viz. sheets in coil form de-coiled, cut to requisite sheet length and used for making stamping were not inputs cleared "as such" but after processing and therefore, the question of determining duty under Rule 57F(1)(ii) i.e. considering such processed remainder input removals to be the removal of inputs, does not arise. The same view has been expressed in Universal Cans and Containers Ltd. v. CCE, Mumbai [1999 (108) E.L.T. 434] wherein the Tribunal held that left over materials of tin sheets for punching metal containers were not classifiable under the same Heading as the unused tin sheets. In the case of CCE, Indore v. National Steel Inds. Ltd. [2001 (45) RLT 749] the Tribunal set aside the duty demand raised on hot-rolle....