CCE Vs. INDUSTRIAL OXYGEN CO. LTD.

JUDGEMENT

(1.) THE revenue has filed these appeals against Order -in -Appeal Nos. 112/98 dated 24.6.1998 seeking to set aside the same and confirm the Order -in -Original. ' The Commissioner (Appeals) in the impugned order has followed the ratio of his own Order -in -Appeal 117/98 (M -I) dated 18.6.1998 in respect of M/s. B O C India Ltd.

(2.) The issue pertains to demand of duty on drums and barrels sold as scrap. The assessee had taken a stand that emptying the metal drums does not amount to any processing of inputs as has been held by the Bombay High Court in the case of Bombay Municipal Corporation v. Devi Dayal Electronics & Wires Ltd. 1993 (66) 198 (Bom.) , that Central Excise Rules stipulate payment of duty on any waste/scrap arising from the process of manufacture of final products and in this case, the empty drums have not arisen from the process of manufacture of final products. The only act they did was to open the drums for the purpose of taking out the calcium carbide for the manufacture of dissolved acetylene gas; that emptying the drums of its contents would not amount to any process and not excisable in terms of Tribunal judgement rendered in the case of Castro/ Oil India Ltd. v. CCB, Mumbai reported in (Tri) and that of IOL v. CCB reported in .

(3.) THE hearing notices were issued to respondents and all the notices issued every time have come back undelivered with postal endorsement "left".