COMMISSIONER OF CENTRAL EXCISE Vs. SREE VIJAYARAMA GAJAPATHI

JUDGEMENT

(1.) In Order -in -Appeal No. 62/2002 dated 30.9.2002, the relevant findings recorded by the Commissioner (Appeals) in Paragraphs 6 to 10, are re -produced below - - "6. The basic issue involved in the instant appeal, is the duty liability on waste and scrap generated by dismantling of worn out machinery previously installed in the appellant's factory. The adjudicating authority has taken a view that dismantling of worn out machinery amounts to manufacture and the resultant scrap is accordingly liable to duty under the provisions of Central Excise Act, 1944. The adjudicating authority, while deciding matter, has relied upon the definition of "manufacture" appearing under Section 2(f) of the Central Excise Act, 1944, as well as the provisions of Section Note 8 (a) of Section XV of the Schedule to the Central Excise Tariff Act, 1985, In the light of these provisions, he has held that the waste and scrap generated by the appellants fall in the category of metal goods definitely not usable as such because of breakage, cutting up, wear or other reasons and has accordingly concluded that the impugned goods come under the purview of Note 8(a) of Section XV of the Central Excise Tariff Act, 1985 read with the definition of "manufacture" appearing under Section 2(f) of the Central Excise Act, 1944 and are liable to duty as scrap. The adjudicating authority has made the following further observations in support pf his stand;

(2.) Ld. DR submits very fairly that the issue pertains to duty liability on waste and scrap arising out of breaking up of old and worn out machinery and the said issue has already been decided by this Bench in case of Hindustan Petroleum Corproation Ltd. v. CCE, Viashakapatnam, 2002 (83) ECC 30 (T): 2002 (144) ELT 555 (Tri. Bang.) against the Revenue. He submits that the ratio of the decision of this Bench has been followed in other appeals.

(3.) None appeared on behalf of the Respondents despite issue of notice,