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2019 (1) TMI 1513 - HC - Customs100% EOU - Vires of CBEC Circular No.62/2001-Cus dated 12.11.2001 - meaning of “Manufacture” held by judiciary - input output ratio - relevancy of CBEC Circular No.1029/17/2016-CX dated 10.05.2016 issued in respect to Cenvat Credit Rules, 2004 - clearance of foundry scrap beyond the ratio/norms of scrap laid down by the Norms Committee - N/N. 52/2003-Cus dated 31.03.2003. Whether clearance of imported scrap after segregation can be said to be clearance “as such”? - Held that:- While the Circular 1029/2016-/CX dated 10th May, 2016 clarifies whether segregated foreign materials from imported honey grade brass scrap can be treated as “inputs as such” as contemplated in rule 3(5) of the CENVAT Credit Rules, 2004, the principle involved is the same. In this case also, the segregated material has an altogether different character and use vis-à-vis the brass scrap. The value per unit and classification of the segregated foreign materials is also different from that of the imported brass scrap. As a necessary corollary therefore, the segregated foreign material cannot be treated as input “as such” for the purpose of levy of customs duty. The Tribunal, therefore, did not commit any error in placing reliance upon Circular No.1029/2016-/CX dated 10th May, 2016. Whether clearance of such scrap upon payment of excise duty would fall within the ambit of paragraph 3 of Notification No.52/2003-Cus dated 31.03.2003? - Held that:- Waste and scrap arising in the course of production or manufacture of finished goods are also exempt from the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 and the additional duty, if any, leviable thereon under section 3 of the said Customs Tariff Act - Reverting to the facts of the present case, the segregated waste has arisen in the course of production/manufacture of the finished goods viz. brass articles; the Commissioner of Customs has recorded that the segregated waste had in fact been cleared on payment of duty after being duly permitted by the Development Commissioner in accordance with the provisions of the EXIM Policy. The requirements of clause (3) of Notification: 52/2003-Cus dated 31st March, 2003 are therefore, wholly satisfied. Under the circumstances, there does not appear to be any legal infirmity in the view adopted by the Tribunal. It is not possible to state that the impugned order passed by the Tribunal suffers from any legal infirmity so as to give rise to any question of law, much less, a substantial question of law, warranting interference - appeal dismissed.
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