GNFC LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The learned advocate for the appellant seeks permission to amend the appeal memorandum as per proposed draft. Permission granted. Amendment to be carried out immediately. On the basis that the amendment is carried out, the appeal is taken up for hearing.

(2.) The appellant has proposed the following two questions stated to arise out of impugned order of Tribunal dated 12-7-2005.

(3.) Heard Mr. Saxena for M/s. Trivedi & Gupta, learned advocates for the appellants. The principal contention is that, any waste and scrap for being liable to duty should be products resulting as products of the process of manufacture. That in the case of the appellant, the capital goods were used for the purposes of the business of the petitioner, namely, for manufacture of the fertilizers and what is sold is the scrap of such capital goods after the capital goods have been used for the purposes of business. According to him, therefore, in light of the provisions of Section 3 of Central Excise Act, 1944 , Rule 57-S(2)(c) of the Central Excise Rules, 1944 (as was applicable at the relevant time), cannot be applied to the facts of the case.