TMI Blog1999 (7) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... mmed sheets; that benefit of Notification No.135/94 is not available to unwrought copper slab and that slab of copper is dutiable and is not eligible to the benefit of Notification No.19/88. 2. The facts of the case in brief are that the appellants are engaged in the manufacture of Brass and Copper Sheets and Circles and unwrought copper; brass and copper sheets and circles are supplied by the appellants to the customers to use them in the manufacture of utensils and handicrafts. The manufacturing process involves melting of brass scrap, copper scrap and zinc scrap. Molten metal is then cast into billets/slabs, they are hot-rolled into untrimmed sheets and further are cold rolled into trimmed sheets. In the process untrimmed sheets emerge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of trimmed sheets, S.No. 8 for the unwrought copper known as slabs and S.No. 10 for copper waste and scrap. The appellants also claimed the benefit of Notification No. 19/88 for the copper slag/dross. Show Cause Notices were issued wherein it was proposed to amend the classification list filed by the appellants by treating the untrimmed sheets/circles as excisable commodities. It was also proposed to reclassify the slag/dross of copper. In reply to SCN the appellants submitted that untrimmed sheets were not marketable and hence not excisable. The Asstt. Commissioner adjudicated the case confirming the demand on untrimmed sheets and slabs of copper by denying them the benefit of Notification No. 135/94 and 134/94 and classified slag/dro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be dutiable. He submitted that admitted position was that untrimmed sheets are captively consumed in the manufacture of trimmed sheets. He referred to Explanation II and VI of Notification No. 1/93 dated 28-2-1993 as amended and submitted that Explanation II stipulated that for the purposes of computing the aggregate value of clearances under this Notification, the clearances of any excisable goods which are chargeable to Nil rate of duty or which are exempted from the whole of duty of excise leviable thereon by any other notification (not being a notification where exemption from the whole of duty of excise leviable thereon is granted based upon the value or quantity of clearances made in a financial year) issued under sub-rule (1) of ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel further submitted that the Unwrought copper slabs are exempt under Notification No. 42/94 as they are ultimately used in the manufacture of utensils and handicrafts. He submitted that the finding of the authorities below that there should be direct use for benefit under his notification is misconceived. He submitted that the benefit cannot be denied on the ground that these slabs are used in the manufacture of utensils through a number of stages mainly untrimmed and trimmed circles. In support of his contention Ld. Counsel cited and relied upon the decision of this Tribunal in the case of Goodlass Nerolac Paints Ltd. v. CCE reported in 1991 (51) E.L.T. 351. 9. On the excisability of copper slag/dross the counsel submitted that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought copper slabs and copper slabs, Ld. DR submitted that the appellants are purchasing such scrap from market, they are not directly used in the manufacture of utensils and handicrafts and unwrought copper and copper slabs go through a number of processes before being used in the manufacture of utensils and handicrafts since they are not directly used in the manufacture of utensils and handicrafts, therefore, the benefit of Notification No. 42/94 will not be available to the itmes. On the excisability of slag, Ld. DR reiterated the findings of the Ld. Commissioner (Appeals). 12. Heard the submissions of both the sides and perused the evidence on record and the case law cited and relied upon. Insofar as the dutiability of untrimmed sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation is admittedly available to the appellants. It has been denied only on the ground that the value of untrimmed sheets will be added for calculating the aggregate value of clearances and since there is a limit, therefore, the benefit of Notification No. 1/93 will not be available, is wrong. Explanation VI to this Notification is very clear which inter alia provides that if the goods are captively consumed in the factory of manufacture then the value of goods so captively consumed shall not be taken into account for computing the aggregate value of clearances and thus the value shall not exceed the fully exempted limit as the appellants are not manufacturing any other product. 14. Having regard to the discussions, we hold that no duty s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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