2005 (1) TMI 197

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....peared for the Department. 3.Revenue proceeded against the appellants on the ground that they removed scrap without payment of duty for the period from 26-2-94 to 6-2-97, on the grounds that the scrap which has arisen in the course of construction of sheds, manufacturing of capital goods for captive use and manufacture of spare parts for maintenance of the machinery. The adjudicating authority held that scrap which has arisen as a result of mechanical working is liable to duty. After going through the details given in the Annexure to the show cause notice he has identified certain items which have arisen due to mechanical working and has demanded duty on them. The duty demanded under Proviso to Section 11A(1) of the CE Act 1944 was Rs. 1....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.....C.)]. (b)        Hyderabad Industries Ltd. v. UOI [1999 (108) E.L.T. 321 (S.C.)]. (c)        Markfed Vanaspati & Allied Industries v. CCE, Chandigarh [2000 (116) E.L.T. 204 (LB)]. (d)        Hindalco Industries Ltd., v. CCE [2002 (144) E.L.T. 339 (Tri.) = 2002 (49) RLT 41]. (e)        Hindustan Petroleum Corporation Ltd. v. CCE [2002 (144) E.L.T. 555]. (f)         CCE v. Diamond Cement [2002 (52) RLT 659]. (g)        Ranjeev Steels Ltd., v. CCE [2003 (154) E.L.T. 450 (Tri.) = 2002 (53) RLT 672]. (iii) &....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nbsp;    The onus is on the department to prove that the scrap was indeed generated as a result of manufacturing activity. The following case law was relied :             K.M. Sugar Mills Ltd. v. CCE [2004 (164) E.L.T. 40]. (viii)      The adjudicating authority picked up the following items to hold that they are scrap arising out of manufacturing activity. (a)        GC sheet/cut piece scrap (b)        MS angles cut piece scrap (c)        Melting scrap/MS cut piece scrap (d)        Roll scra....