TMI Blog1991 (8) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... original authority was in error in demanding duty in respect of such scrap. Brief facts are that the Respondents are manufacturers of pneumatic control equipment. They have been permitted under Rule 57F(2) by the Central Excise authorities to remove scrap of aluminium, brass and zinc to job worker for conversion of the same into castings, forgings, rods etc. Later however, the authorities issued show cause notice to the Respondents in terms of Rule 57F(4)(a) asking them to show cause as to why duty should not be demanded in respect of the scrap sent out from their factory for conversion. 2. The learned SDR for the Department pleaded that Trade Notice No. 94/89 was issued in respect of Aluminium scrap and the same could not be extended in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the benefit as allowed in terms of the trade notice issued is admissible. Rule 57F(2) under which the benefit of removal without payment of duty was allowed in stipulation that the inputs in respect of which MODVAT Credit has been taken can be removed as such or after the inputs have been partially processed during the course of manufacture of the final products to a place outside factory for certain specified purposes as set out under sub-rule (a) and (b) of Rule 57F(2). Rule 57F(2) permits only removal of the inputs as such or after these have been partially processed. Scrap generated during the course of manufacture of the inputs which have been utilised for the manufacture of finished products in the factory cannot by itself be trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of duty or it can be destroyed and it can be removed without payment of duty only when it is covered by contingency provided under sub-rule (b) of Rule 57F(4). Admittedly, the Trade Notice No. 94/89 was issued only in respect of Aluminium scrap and this trade notice can be taken to have been issued at the behest of the Board or the Central Government and a claim can be made that this can be treated as an order of the Central Govt. for the purpose of sub-rule (b) of Rule 57F(4). In that view of the matter in case of Aluminium, the benefit of extended interpretation of sub-rule (b) can be given. However, in respect of brass and zinc no such trade notice or order has been issued and therefore, in terms of Rule 57F(4) the scrap has to suffer d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
