9911796707
TMI Blog2012 (6) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... e Respondent/s Per Archana Wadhwa Being aggrieved with the order passed by Commissioner (Appeals), Revenue has filed the present appeal. 2. We have heard Ms. Indira Sisupal, JDR appearing for the Revenue and Shri Hari Radhakrishnan, Advocate appearing for the respondent. 3. The issue relates to demand of duty on scrap which has arisen in the respondent s factory whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g replaced in the place of corroded portion of the plant, pipe, vessel etc. 4. The Assistant Commissioner has accepted that no duty was chargeable for the scrap mentioned in category (a) above holding that it did not arise as a result of manufacture. He, however, held that scrap accrued from new metal, vessel and pipes arising in the course of cutting the same for replacement of worn out p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required size. In the process of cutting, the remnants are treated as scrap. Therefore, the Asst. Commissioner has erred in assuming that the scrap has arisen due to mechanical working of metals. The Asst. commissioner has not given any reason as to why he considered such scrap as arising from mechanical working. Obviously, there can be no mechanical working when the new plates and pipes are cut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted fact that the scrap which has been arisen are remnants of duty paid steel sheets, plates, pipes etc., derived while cutting the new steel sheets, plates, pipes etc., for replacing the worn out/corroded part of the plant viz., vessel, pipes tubes etc. The Tribunal set aside the duty demand in respect of all goods figuring under Sl.No.2. It is immaterial whether the scrap represents remnants of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d worn out pipes, the same cannot be differentiated on the said ground. Inasmuch as the scrap, admittedly, has arisen on account of cutting of new sheets, plates, pipes for the purpose of replacing worn out pipes, it cannot be said that the respondents have manufactured the scrap so as to pay duty on the same. Accordingly, the Revenue s appeal lacks merit. The same is, accordingly, rejected. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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