Metal Rolling Mills Vs. Collector of Central Excise, Bombay  Insc 362 (5 May 2004)
& G.P. Mathur Rajendra Babu, Cji :
appellant is engaged in the manufacture of
Copper Sheets and Circles falling under Tariff Item No.26A (2) out of Copper
Scrap and Copper Wire Bars,
Copper Wire Bars, Copper Wire rods and castings not otherwise specified falling
under Tariff Item 26A(1a), and
Copper slabs and billets falling under Tariff Item 26A(1) out of old Copper
Scrap and Scrap of Copper Wire bars.
contended by the appellant that they are entitled to claim exemption under
Notification No.74/65-CE dated 1.5.1965 as amended for the product Copper
Sheets and Circles falling under Tariff Item 26A(2) and exemption under Notification
No.119/66-CE dated 16.7.1966 as amended for the products Copper Wire Bars,
Copper Wire rods and Castings not otherwise specified falling under Tariff Item
26A(1a) and Copper slabs and billets falling under Tariff Item 26A(1) in its
classification list dated 25.3.1983 using the raw materials mentioned as
aforesaid for the relevant period.
Adjudicating Authority, the Appellate Authority and the CEGAT did not accept
the claim made by the appellant. The contention put forth before us is that the
Notification in question dated 19.8.1980 exempting manufacturer of Copper, that
is to say, plates, sheets, circles, strips and foils in any form or size
falling under Tariff Item 26A(2) in the manufacture of which Copper in any form
is used and on the virgin copper or the copper content of the alloy, the
prescribed amount of duty of excise to be paid or is deemed to have been paid
prescribing duty at the rate of Rs.700 PMT.
Notification dated 19.6.1980, it is claimed that the waste or scrap obtained
from copper as Copper alloy where the prescribed amount of duty of excise has
been paid on the copper or the copper content of the alloys would be exempted
from taxation and the appellant had filed classification on that basis.
cause notices were issued to the appellant to the effect that their claims for
exemption/concession asked for under Notifications in question cannot be
accepted. There is the contention of the appellant that this notice has been
issued sixteen months after the filing of the Classification.
Tribunal took the view that the exemption is subject to the condition that the
raw material out of which final product is manufactured should be duty paid,
either the proof of such payment of duty on raw materials should be appropriate
or there should be a deeming order that such raw materials are deemed to be
treated as duty paid.
claim of the appellant that the scrap had been purchased from the open market
and, therefore, it should be deemed that it has been duty paid, the Assistant
Collector took the view that the products are manufactured out of scrap
purchased in the open market for which no duty paying documents are produced,
exemption could not be extended to these products. The Waste and Scrap was
dutiable only when it was a manufactured product and was otherwise excisable
under the provision of the Act. All waste and scrap is neither a manufactured
product nor is excisable and on this basis held that the appellant is not
entitled to the benefit of the relevant Notifications.
think the view taken by the Tribunal cannot be considered to be as
inappropriate. Unless the scrap and waste are goods that had been used can be
demonstrated to have been a duty paid goods, it cannot be assumed that they are
so, particularly when it cannot be said with certainty that all scrap and waste
material used has been subject to excise duty earlier. The waste and scrap was
dutiable only when it is a manufactured product and not otherwise. The object
of exemption being to avoid cascading effect in the matter of payment of excise
this contention on behalf of the appellant is rejected. So far as the question
of limitation is concerned, we find that the classification list filed by the
appellant dated 25.3.1983 was not approved and a show cause notice was issued
on 23.7.1984. The approval was accorded only on 15.9.1984. As there was no
approval of the classification list and there was no final assessment, we
think, in the circumstances of the case the bar of limitation would apply only
from the date of the finalization of the classification and we do not find that
the decisions relied upon by the appellant either in Samrat international (P)
Ltd. vs. Collector of Central Excise, 1992 (58) ELT 561 or in Collector of
Central Excise, Baroda vs. Cotspun Limited, 1999 (113) ELT 353 have any
application to the present facts of the case.
therefore, stands dismissed.