TMI Blog1997 (1) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... der : I have carefully considered the written and oral submissions. As per the classification list No. 247/86 which is filed with the appeal petition, the appellants have claimed the benefit of Notification No. 54/86 . The appellants are prima facie ineligible to claim the benefit under Notification No. 54/86 because they are availing Modvat credit on the inputs viz. steel sheets covered by heading Nos. 72.11 and 72.12. In terms of proviso (i), the benefit of duty free clearances of waste and scrap is out of question if it was generated from sheets on which Modvat credit was already availed. Further, the benefit under proviso clause (ii) will also not be available as the waste is generated from one of the product covered by clause (i). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecific product in the classification list of the appellants, the steel sheets which were brought for manufacture of the final product were specifically covered by heading Nos. 7211 and 7212 and there was no question of going to provision II and that as the credit had been taken the removal at nil rate of duty was not proper and the goods were required to be cleared on payment of proper excise duty and that view taken by the Collector of Central Excise (Appeals), Bombay was correct. 4. We have carefully considered the matter. Under the Notification No. 54/86-C.E., dated 10-2-1986, the waste and scrap which was classifiable under sub-heading Nos. 7203.10 and 7203.20 of the New Central Excise Tariff were eligible to nil rate of duty provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that in their case waste and scrap had not arisen from the goods falling under heading Nos. 7211 and 7212 but had arisen after the sheets have been further processed. We find that the expression used is arisen from . The inputs were the steel sheets and the waste and scrap had arisen from the said steel sheets and it could not be said that the waste and scrap had arisen out of waste and scrap during the course of manufacture of the final products. 6. The ld. advocate had also submitted that the waste and scrap had not arisen from their inputs i.e. steel sheets but from their final products stampings. After the final products are produced, there is no question of any further waste and the goods are [classified] and removed on payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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