Order Date – 07 February 2023

Parties: Mitesh Impex and Rajhans Impex Pvt Ltd Vs C.C.E. & S.T.-Rajkot

Facts –

• The Appellant, Mitesh Impex and Rajhans Impex Pvt Ltd, had imported Brass Metal scrap containing other impurities without payment of duty under Notification 52/2003-cus dated 31.03.2003 and segregated into foundry and non-foundry scrap.
• It was alleged that one the non-foundry scrap cleared by the appellant is un-manufactured goods and is liable to custom duty on its clearance and on other after the allowance of 2% scrap over and above the 2% scrap is also liable to custom duty.

Issue –

• Whether the non-foundry scrap cleared by the appellant is liable to pay duty?

Order –

• The Tribunal held that same issue has been considered by this Tribunal in the case of Meridian Impex Vs. CCE. & S.T.- Rajkot vide Final Order No. A/11068-11093/2018 dated 09.02.2018 it was held that “in our view is a process integrally connected to the manufacture of brass articles. Besides, this Tribunal in the case of Singh scrap Processor Ltd. Vs, Commissioner of C.Ex. 2002 (143) ELT 619(Tri- Mumbai) held the process of removal of impurity results into manufacture. Accordingly, the non-foundry scrap cleared in DTA on payment of excise duty, cannot be construed clearance of imported scrap ‘as such’.”
• Accordingly, the issue is no longer res integra. Hence, the impugned orders are set aside appeals are allowed.