Customs, Excise and Gold Tribunal - Delhi
B.H.E.L. vs Commissioner Of Central Excise on 1 November, 2000
Equivalent citations: 2001(127)ELT287(TRI-DEL)
ORDER V.K. Agrawal, Member (T)
1. Though the matter is posted today for hearing stay petition filed by M/s. B.H.E.L., we take up the appeal itself for disposal with the consent of both the sides as the issue involved is in very narrow compass.
2. The issue involved in this appeal is whether the Offcuts of the CRGO Sheets and Rejected sheets are classifiable as waste and scrap or the duty is to be charged as CRGO Sheets falling under Heading 7225.10 of the Schedule to the Central Excise Tariff Act. Shri P.P. Setty, Manager Excise of B.H.E.L., submitted that in the case of B.H.E.L. v. CCE, Indore, wherein the issue involved is similar the Tribunal vide Final Order No. 119/2000-B, dated 17-1-2000 has held that the Offcuts would be classifiable as Shapes following the ratio of the Supreme Court decision in the case of LML Ltd. v. CCE, 1995 (75) E.L.T. 382. He, therefore, requested that the present appeal may also be disposed of following the ratio of the said decision.
3. Shri M.P. Singh, learned D.R., submitted that it appears that the Appellants were not only clearing the Scrap of CRGO Sheets but they were clearing the Rejected sheets also; that in LML case the goods under consideration were Offcuts of Steel Sheets and not the Steel Sheets itself; that there is nothing on record to show that what was cleared by them was shapes and sections. He, therefore, requested that the matter may be remanded to the Asstt. Commissioner for deciding the issue on the basis of Supreme Court's decision in the case of LML Ltd.
4. We have considered the submissions of both the sides. The recovery of the dues against BHEL is stayed. In LML case (supra) it was held by the Supreme Court that portions of Cut sheets which are used in the manufacture of ancillary items cannot be regarded as waste and scrap and it was not disputed in that case that Offcuts which remain after the parts of Scooter had been manufacture by using the Steel Sheets no longer retain rectangular shapes. We find substance in the submissions of the learned D.R. that there is nothing on record to indicate the nature of the goods involved. In view of this we remand the matter to the Asstt. Commissioner with the direction to decide the issue of classification in terms of the judgment of the Supreme Court in the case of LML Ltd., 1997 (94) E.L.T. 273 (S.C.). The Appeal is thus allowed by way of remand.