Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

T.T. Recycling Management India Private Limited, Karnataka Versus Commissioner of Central Excise, Bangaluru

2016 (8) TMI 389 - AUTHORITY FOR ADVANCE RULINGS

Liability of duty - processing of secondary raw materials (steel scrap of difference and variable composition) into blended steel scrap - Held that:- the input is unprocessed steel scrap and output is blended steel scrap. The blended steel scrap is produced with required chemical composition by mixing various Low manganese and High manganese scraps and is fit to be used as raw material in the manufacture of various products of steel. Further, blended steel scrap is not put to the same use to whi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tence. - Therefore, when said unprocessed steel scrap undergoes above process, a new product saleable in the market, which is having a distinct identity and use, comes into existence and is known in the commercial 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ter Head No. 72044900 in the First Schedule – “Others – Ferrous waste and scrap” under the Central Excise Tariff Act, 1985. - Ruling No. AAR/CE/ 19 /2016 In Application No. AAR/44/CE/14/2015 - Dated:- 15-7-2016 - V.S. Sirpurkar (Chairman), Shri S.S. Rana and Shri R.S. Shukla, JJ. For The Applicant : Shri Badrinath NR, Advocate For The Department : Shri Amresh Jain, Authorised Representative Ruling T. T. Recycling Management India Private Limited (hereinafter also referred to as applicant) is a r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 analyzing process. Segregation mainly will be done in three categories i.e. High Manganese, Low Manganese and Re-use Scrap. The process of blending is the term used t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is process of blending and baling is carried out by manual as well as mechanical process with the help of specially trained workers operating special purpose cranes and machines to carry out this operation along with skilled workmen and supervisors. This process is to ensure that the eventual mix shows precisely the chemistry / composition, which is required / usable by the foundries and steel mills as a raw material for its manufacturing activity. It eventually results into the production of bl .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y 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 identi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

es a number of steps. The input is unprocessed steel scrap and output is blended steel scrap. The blended steel scrap is produced with required chemical composition by mixing various Low manganese and High manganese scraps and is fit to be used as raw material in the manufacture of various products of steel. Further, blended steel scrap is not put to the same use to which the unprocessed steel scrap is put and vice versa. Therefore, input i.e. unprocessed steel scrap is distinct from output i.e. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ng a distinct identity and use, comes into existence and is known in the commercial 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

own character and use, manufacture takes place. 6. Applicant has aptly relied on the decision of Hon ble Supreme Court in the case of Mamta Surgical Cotton Industries, Rajasthan Versus Assistant Commissioner (Anti- Evasion), Bhilwara, Rajasthan (2014 (4) TMI 593 -SC). In this case, the appellant was manufacturing surgical cotton from raw cotton. Hon ble Supreme Court held that said process is manufacture as surgical cotton has different name, character and use. Further, raw cotton loses its ori .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as a new and distinct article. In the instant case, after going through the various steps that are carried out by the assessee for getting surgical cotton from raw cotton, we can certainly say that cotton has undergone a change into a new commercially identifiable commodity which has a different name, different character and 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n the instant case, blended stainless steel scrap is manufactured from unprocessed steel scrap. This blended scrap is called by a different name. It also has a different use and character. Further, unprocessed steel scrap loses its original form. Therefore, ratio of said Hon ble Supreme Court judgment is applicable to the present case. 8. Further, applicant submits that this Authority held that the process of conversion of various grades of stainless steel scrap ( metal scrap ) to blended metal .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sition etc, into metal scrap of specific grades which is directly usable for manufacture of stainless steel. Therefore what emerges from the processes would be a product having distinct identity and use, different from the raw material from which it is made…… 9. Revenue submits that above ruling in case of M/s ELG India Private Limited was that the conversion of various grades of stainless steel scrap to blended metal scrap amounts to manufacture and said ruling is binding only on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version