2006 (10) TMI 342 - AT - Central Excise

Summary

Issues involved: Determination of dutiability of scrap generated during plant expansion u/s Central Excise Tariff Act.

Summary:
The appeal arose from an Order-in-Appeal confirming demands on scrap removed during plant expansion, deemed excisable by the Commissioner. The appellant argued the scrap is not dutiable as it does not meet the definition of scrap u/s Section XV of Central Excise Tariff Act, not being a result of mechanical working of metals.

The appellant's counsel cited a precedent involving metal wastes and scrap not usable due to breakage or wear as dutiable, relying on rulings such as CCE v. Birla Corporation Ltd. and others. Contrary to the department's view, the Tribunal found the scrap in question did not arise from mechanical working of metals as per Section XV, similar to scraps from construction activities deemed not dutiable. Consequently, the impugned order was set aside, and the appeals were allowed with consequential relief.