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Waste and Scrap

CA Anand Sarda (Working) (1580 Points)

22 January 2008

Definition of Scrap: Scrap will be liable to duty if it is known in commercial paralance by that name and has an established market. waste and scraps are goods but dutiable only if manufactured.

Union of India Vs. Ahmedabad Electricity

Ruling : Cold Ash, though residue or waste of coal burnt in a bolier is not manufactured, therefore cannot be exercised???

Pls explain me WHY?

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Kapil Bajaj (Service) (112 Points)
Replied 24 January 2008

Hiii, In the famous judgement of DCM vs UOI the court ruled that for a goods to be excisable they must be produced and manufactued in India and must be marketable. there must be !)some sort of transformation ii)a new and a different product must emerge having a distinct name, charcter and use. and also in the case of Indian aluminium Industires ltd. all goods that are saleable are not marketable. Every thing is saleable.The onus of proof lies with the department whether they are infact markekable. Marketability is also an essential condition to be fulilled in oreder to check whether the goods are excerciable or not. and also please check whether Soda ash is specified in the CETA or not, since on those cgoods and commodities are excisable if they are mentioned in CETA. hope i m able to make u clear.