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2015 (11) TMI 462 - CESTAT MUMBAI

2015 (11) TMI 462 - CESTAT MUMBAI - 2015 (329) E.L.T. 561 (Tri. - Mumbai) - Availment of CENVAT Credit - sale of finished goods lower than the price of inputs (raw material) - 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 - department is considering the goods removed by them as input cleared as such - Held that:- the classification of the goods followed by the appellant is .....

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are already available with the department and form part of the demand notice. We do not see any reason not to accept the value declared in such invoices. The Revenue has also not produced evidence that the appellant has collected any amount over and above the value declared in such invoices. In view of this position, the invoice value may be accepted and duty computed @ 15% on the declared value.

Extended period of limitation - Held that:- whole case was made based upon an information .....

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o. E/207/05-Mum - Final Order No. A/1675/2015-WZB/EB - Dated:- 15-6-2015 - Mr. P.K. Jain, Member (Technical) And Mr. S.S. Garg, Member (Judicial) For the Petitioner : Shri Nimesh Mehta, Advocate For the Respondent : Shri V.K. Agrawal, Additional Commissioner (AR) ORDER Per: P.K. Jain Brief facts of the case are that the appellant is engaged in the manufacture of transmission line towers. For the manufacture of such towers, they used angles and plates as inputs and availed cenvat credit on the sa .....

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ods 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. The demand notice was confirmed by the original authority. Aggrieved by the said order, the appellant filed appeal before the Commissioner (Appeals) who ordered for certain pre-deposit. The case was dismissed by the Commissioner .....

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rity confirmed the duty of ₹ 5,28,899/-, recovery of interest with effect from 28.9.1996 and the penalty amount under Section 11AC was reduced to an amount equivalent to the duty. Thereafter the appellant filed an appeal before this Tribunal and this Tribunal in turn remanded the matter back to the Commissioner (Appeals) to take into account certain case laws. After the said direction, the Commissioner (Appeals) has passed the present order. Aggrieved by the said order, the appellant is be .....

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y 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 Ste .....

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fication and hence rate of duty. The second issue is relating to the value of the goods involved. 5. As far as the first issue is concerned, the Hon ble Supreme Court in the case of LML Ltd. (supra) as also Bhushan Steels and Strips Ltd. (supra) has discussed the issue and in para 14, 15 and 16 has observed as under:- 14. In L.M.L. Ltd. case this Court held that cut sheets which are used in the manufacture of ancillary items cannot be regarded as waste and scrap as the same were used by the asse .....

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llary items cannot 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 .....

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t the offcuts of steel sheets being of different shapes and sizes would fall under Tariff Entry 72.10 which after restructuring of the tariff have become equivalent to Entry 72.16. 15. We agree with the view taken by the Tribunal. HSN Explanatory Notes in Chapter 72 provide that waste and scrap is generally used for the recovery of metal by re-melting or for the manufacture of chemicals. It further provides that Heading 72.04 excludes articles which, with or without repair or renovation, can be .....

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items. Thus, the Tribunal has, and in our view, rightly held that the side slittings, end cuttings and others will be classifiable under Heading 72.16 of the Schedule to the Tariff Act being offcuts of different shapes and sizes. The finding recorded 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 .....

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