TMI Blog2017 (12) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... t to attract excise levy - demand not sustained - appeal allowed - decided in favor of appellant. - Excise Appeal No. 51769 of 2014 (DB) - FINAL ORDER NO. 57654 /2017 - Dated:- 6-11-2017 - Mr. Justice (Dr.) Satish Chandra, President and Mr. V. Padmanabhan, Member (Technical) Shri Amit Jain, Advocate for the Appellants Shri R K Mishra, AR for the Respondent ORDER Per: V. Padmanabhan: The appeal is filed against Order in Appeal No. 164-13-14 dated 16.12.2013. The appellant is engaged in the manufacture of tractors and also parts of tractors. Tractors are exempted from whole of excise duty. For this purpose, various parts and components are bought out and used in the assembly of tractors. In addition to the division ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... waste and scrap in terms of section note 8 (a) of the section Note 2 of Section XV covers not only scrap arising from mechanical working of metals but also metal goods definitely not usable as such, because of breakage etc. 5. After hearing both sides and perusal of record, it is not in dispute that the defective / damaged components have not been manufactured in the appellants factory. Such components were procured by the appellants for use in the manufacture of tractors which are exempted from duty. Some of the components were found unfit or got damaged during the manufacturing process and have been cleared as waste and scrap. It is evident that damaged goods have not been manufactured by the appellant but were procured from outside a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble goods. No new product has come into existence. The scrap of paper cannot be considered as a product different from the paper, the waste arising out of paperboard is not a product different from paperboard. We also do not find any special definition rendering emergence of such waste, scrap, paring as amounting to manufacture. Mere mentioning in the tariff is not sufficient to attract excise levy. 5. Following the above ratio, we find no justification in the impugned order and accordingly set aside the same. Appeal is allowed. 7. By following the decision of the Tribunal in similar circumstances, we are of the view that the impugned order cannot be sustained. Same is set aside and appeal is allowed. [Order Pronounced in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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