23 December 2010
sir we are a manufactures tell me how to treat scraps. should we recorded it or not plz give me full detail regarding sale,record and other formalities
23 December 2010
Waste and Scrap are ‘goods’ - In Khandelwal Metal and Engg Works v. UOI - 1985 (Supp) 1 SCR 750 = 1985 (20) ELT 222 (SC) = AIR 1985 SC 1211 = (1985) 3 SCC 620, Apex Court held that scrap would be liable to duty, if it is known in commercial parlance by that name and has an established market - followed in Dhrunal Chhotalal Patel v. UOI - 1993 (63) ELT 27 (Bom HC). In Greysham v. CCE 2000(117) ELT 350 (CEGAT), it was held that waste and scrap of steel arising during manufacture is dutiable as it is marketable and specifically mentioned in tariff.
Waste and scrap not goods if not marketable - Carbide sludge arising in manufacture of acetylene gas is not marketable and hence not liable to duty – CCE v. Bansal Indus. Gases 2003(151) ELT 4 (SC 3 member bench). Spent Nickel Catalyst arising during manufacture of soap is not an excisable commodity as department failed to prove that it is a marketable commodity. – CCE v. Hindustan Lever 2003(151) ELT 10 (SC).
Waste and scrap excisable only if mentioned in CETA - The waste and scrap will not be ‘excisable goods’ unless they are specified in CETA. In CCE v. Carborandum Universal Ltd. 1998(103) ELT 363 (CEGAT), it was held that waste termed as 'dust collector fine' emerging during grinding is merely an industrial waste and even if it fetches some price, it is not 'excisable goods' as there is no tariff entry in CETA.
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