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TMI Blog2015 (11) TMI 462X X X X Extracts X X X X X X X X Extracts X X X X ..... ing transmission line towers, angles and plates of smaller dimensions are left out. They are selling these in the market. While clearing the said goods, they treated the same as waste of ferrous of iron and steel and classified the same under sub-heading 7204.90 and paid the duty accordingly. A demand notice was issued proposing to classify the said goods under the original heading in which they were received, viz. as angles and plates and also take the value at which such goods were received by them. Demand notice dated 22.2.2000 was covering the period 23.7.1995 to 27.9.1996 invoking the extended period of limitation. The case was made based upon an information and visit of the Preventive Branch of the Central Excise Headquarters, Nagpur. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere not the inputs received by them. He further submitted that the value of such small pieces is far lower than that of the prime size angles and plates. He further submitted that it is very clear from the invoices that they have sold the goods at less than half the original price on which they had received and thus the goods cleared are nothing but waste and scrap and they have paid the duty correctly. 3. The learned Additional Commissioner (AR), on the other hand, submitted that the issue is well settled by the Hon'ble Supreme Courts decision in the case of LML Ltd. vs. CCE, Kanpur reported in 1997 (94) ELT 273 (SC), which has again been reaffirmed by the Hon'ble Supreme Court in the case of CCE vs. Bhushan Steels and Strips Ltd. report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be regarded as having been used for recovery of metal or for use in the manufacture of chemicals. This being so, those portions of cut sheets which are not used for recovery of metal or in the manufacture of chemicals cannot be cleared under Tariff Item 72.03. At the same time the definition of the word "sheet" as contained in Chapter 72 would clearly indicate that the cut sheets which are used by the appellant do not fall under that category. The definition of sheet, inter alia, states that it has to be a hot or cold-rolled flat product, rolled in rectangular section of thickness below 5 millimetres and supplied in straight lengths. It was not disputed that the offcuts which remain after the parts of the scooter had been manufactured b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal that no penalty is imposable in the present matters having not been challenged in these appeals, is confirmed." In view of the said decision of the Hon'ble Supreme Court, in our view, the classification of the goods followed by the appellant is incorrect and is required to be rejected. The goods would be classifiable under the respective headings and would be chargeable to 15% duty as proposed in the show cause notice. 6. As far as the value of the goods is concerned, we note that when the goods were purchased by them, they were of bigger dimensions and the goods sold by them are of smaller dimensions and of varying sizes. In view of such position, such goods will fetch far less value compared to the goods purchased by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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