TMI Blog2004 (1) TMI 232X X X X Extracts X X X X X X X X Extracts X X X X ..... ng stream and sold/disposed as 'Spent Catalyst'. 2. (a) The appellant had imported the catalyst in July 1997 for initial charge under the EPCG scheme. This scheme EPCG i.e. Export Promotion Capital Goods imports scheme permitted the imports of Capital Goods at a concessional rate of duty with an inbuilt export performance condition. No credit could be availed on the imported goods since no CVD was paid on the import as Capital Goods. (b) The appellants, after these Capital goods catalyst were spent, sent the same on challans to the job worker for recovery of the metals i.e. Platinum. No duty was paid on such removals by the appellants. On receipt of the recovered metal, the same was sold by the appellants as metal. (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw material evolving and resulting into a new entity. Therefore Spent Catalyst emerges not as a result of 'manufacture'. When the result is not of manufacture, the levy under Section 3 of the Central Excise Act, 1944 would not be attracted merely because of, as campaigned by the ld. DR, on the ground that it matches a tariff definition under chapter 71 when read with HSN notes and the entity is marketable. (iii) The Supreme Court in the case of 'cinder' emerging due to burning of coal in the case of Union of India v. Ahmedabad Electricity Co. Ltd. [2003 (158) E.L.T. 3 (S.C.)] has held as follows : "32. From the above discussion it is clear that to be subjected to levy of excise duty 'excisable goods' must be produced or manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even if ships are considered as Capital Goods, entity arising out of ship breaking are brought in the exigibility net vide specific entry and note in the Central Excise Tariff, as has been distinguished in the Diesel Components Works case [2000 (120) E.L.T. 648 (T) = 2000 (40) RLT 641] para 10 by the bench. Therefore it is to be held, that Capital goods can never be raw material, conversion thereof cannot be manufacture i.e. a manipulation of raw material to bring a new commercial by known entity, even if it is marketable or/and meets the stipulation of an entry in the tariff. That this would only be exigible manufacture in such only cases where 'a deemed manufacture clause' is brought by a Chapter or Section note or/and by notification spe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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