9911796707
TMI Blog2018 (10) TMI 522X X X X Extracts X X X X X X X X Extracts X X X X ..... and books of accounts, it was noticed that during the period 2003-2004 to 2007-2008 appellant has recorded some amounts as received from sale of steel scrap/miscellaneous scrap and Grog. The audit party sought an explanation from appellants. Appellants indicated in the reply to audit party that the steel scrap is generated out of MS Plates, Moulds/ Liners on repairs and replacement in plant etc., and the scrap generated is also from their work shop, they never availed any CENVAT credit on these materials and hence no Central Excise duty is paid and further that in the case of used and rejected "GROG" they had procured from local market, they did not avail the CENVAT credit hence no Central Excise duty was paid. A show cause notice was issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssue is now settled by the Apex Court in the case of Grasim Industries Vs. Union of India [2011 (273) ELT 10] wherein, it is held that scrap which is generated during the process of repair and maintenance cannot be said to be by-products and the duty liability does not arise. 4. Learned Departmental Representative on the other hand draws our attention to the findings recorded by the First Appellate Authority. It is his submission that the waste and scrap that has arisen cannot be considered that arose manufacturing of components, parts, spares and structures etc., and the description mentioned in the sales invoice indicates that the said scrap is arising out of M.S. Boring scrap, M.S. scrap etc. It is his further submission that the duty l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing of the cement, which is the excisable end product, as since welding electrodes, mild steel, cutting tools, M.S. Angles, M.S. Channels, M.S. Beams etc. which are used in the process of repair and maintenance are not raw material used in the process of manufacturing of the cement, which is the end product. The issue of getting a new identity as M.S. Scrap and Iron Scrap as an end product due to manufacturing process does not arise for our consideration. The repairing activity in any possible manner cannot be called as a part of manufacturing activity in relation to production of end product. Therefore, the M.S. scrap and Iron scrap cannot be said to be a by-product of the final product. At the best, it is the by-product of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
