9911796707
TMI Blog2016 (8) TMI 389X X X X Extracts X X X X X X X X Extracts X X X X ..... p from the generating factories and approved vendors within India as well as outside India. The scrap so procured in such a variety of forms and grades is neither suitable for the foundries nor suitable for steel mills as a raw material for its manufacturing activity. Steel scraps are classified into various grades, primarily on the basis of chemical / composition of the scrap e.g. High Manganese and Low Manganese. The different grades of metal scrap will then be identified from analyzing the collected steel scrap based on chemical composition test report issued by the third party lab and sizes as per each shape by manual process and steel scrap will be segregated by manual process with the help of conveyor and overhead crane after analyzin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will be used as raw material in the foundries or in the steel mills for its manufacturing activity. 2. Questions raised by the applicant before this Authority is as under: 1. Whether processing of secondary raw materials (steel scrap of difference and variable composition) into blended steel scrap is liable for payment of Central Excise duty under the provision of the Central Excise Act, 1944? 2. Whether produced "blended metal scrap" can be classified under Chapter 72044900 of the Central Excise Tariff Act, 1985? 3. Revenue inter-alia submits that activity proposed to be undertaken by the applicant does not have any essential difference in the identity between the original commodity and proposed article, as both would come under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... market by a different name. Further, blended steel scrap possesses higher utility than the unprocessed scrap steel. Therefore, applicant's contention that the production of blended steel scrap by processing unprocessed scrap steel amounts to manufacture under the Central Excise Act, 1944, is correct. 5. The law is settled by way of number of judicial pronouncements and provision of law that Excise duty is a duty on the manufacture of goods. Manufacture is complete as soon as the raw material undergoes some change by the application of one or more process. If a new substance is brought into existence or if a new or different article having a distinct name, character or use comes into being from a particular process or processes, such proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... different use. The process of transformation is not merely processing to improve quality or superficial attributes of the raw cotton. The cotton loses its original form and it marketed as a commercially different and distinct product. This aspect of the matter is rightly noticed by the High Court by relying upon the decision of this Court in Empire Industries case (supra) wherein this Court has explained the meaning of the expression 'manufacture' as when the result of the treatment, labour and manipulation a new commercial commodity has emerged which has a distinctive new character and use. 7. The case before us is akin to case of Mamta Surgical Cotton Industries. In the instant case, blended stainless steel scrap is manufactured from u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also in respect of the transaction in relation to which the ruling had been sought. In this regard, Revenue relied on the judgment of the Hon'ble Supreme Court in Columbia Sportswear Company vs. Director of I.T. Bangalore 2012(283) ELT 0321 SC. Relevant portion of the judgment is reproduced as under; The Authority thus, held that the advance ruling of the Authority is binding in the case of one transaction only and the parties involved in respect of that transaction and for other parties, the ruling will be of persuasive nature. The Authority, however, has clarified that this is not to say that a principle of law laid down in a case will not be followed in future. This decision of the Authority in Cyril Eugene Pereira, In re. (supra) has b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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