2000 (10) TMI 364

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..... te, for the Appellant. Shri J.M. George, JDR, for the Respondents. [Order per : Gowri Shankar, Member (T)]. - The appellant was engaged in compacting of bales of ferrous scrap of various kinds, which it purchased. Such bales of scrap were sold by it to its users. The appellant embarked upon a procedure to recover tin from the scrap of tin sheets which is received, by subjecting these sheets to .....

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..... penalty of Rs. 1 lakh. 2. The Contention of the advocate for the appellant that despite the recovery of small proportion of tin, the scrap continues to be ferrous scrap and there is no manufacture, has to be accepted. We are told by him that the recovery of tin was approximately of the order of 1 kg. from 1 MT of Scrap. Tin sheets have a thin coating on the material and this figure, even if .....

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..... s been demanded in the tin the advocate offers to pay such duty if it is payable according to law. The notice does not cite in support of claim that a new commodity has emerged. There was therefore no basis whatsoever to demand duty on the ground that the appellant had manufactured scrap. 3. There can obviously be no confiscation of the scrap or any penalty imposable on the appellant with re .....

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