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2018 (5) TMI 2021 - AT - Central ExciseLevy of Central Excise Duty - waste and scrap generated out of cutting and slitting of CR/HR coils by EPAs as per specification to their buyers - HELD THAT:- During the course of production, waste and scrap generated out of cutting and slitting of CR/HR coils, returned to M/s Tata Steel Ltd. as per agreed price. It has been held in the case of Faridabad Iron & Steel Traders Association [2003 (11) TMI 107 - HIGH COURT OF DELHI] that cutting and slitting of CR/HR coils, does not amount to manufacture. The ratio laid down in this judgement was accepted by the CBEC and accordingly,Board’s Circular No.584/21/2001-CX dated 07.09.2001 was set aside. In the said Circular, it was held that cutting of HR/CR Coils of iron of non-alloy steel into sheets or slitting into strips of lesser width or slitting of sheets into strips will amount to manufacture if the resultant product is classifiable under different sub-heading of the Central Excise Tariff. Subsequently, CBEC withdrew the Circular in 2005 by issue of Circular dated 2nd March, 2005, wherein it has been clarified that the activity of cutting and slitting of HR/CR Coils into required length do not amount to manufacture of Excisable goods within the meaning of Central Excise Act. The question of charging Central Excise duty on the waste and scrap emerging out cutting/slitting of HR/CR Coils is not sustainable - Appeal allowed - decided in favor of appellant.
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