Commissioner of Central Excise Vs. Tunga Alloys

1. the appeal is moved by the revenue against the aforesaid order of the collector (appeals) allowing modvat credit in respect of ctd end cuttings and ctd bar cuttings. the department's objection was that the declared input is ferrous waste and scrap (remelting scrap) classifiable under heading 7203.20, whereas the goods received are ctd end cutting and ctd bar cuttings of steel classifiable under heading 7214.90. the commissioner took note of the fact that the goods brought in are nothing but remelting scrap and effective rate of duty in respect of both the items remain the same namely rs. 500/-. he observed that no objection should be taken and in that view allowed the appeal.2. after hearing both the sides, i find that there is no dispute that the inputs have been received only for the purpose of melting and not for the purpose of rerolling. their intention in their declaration is clearly evident that they are to bring ferrous metal scrap. tariff heading pertaining to such type of scrap has been mentioned in the declaration. all the same, when the cuttings of ctd bars are only fit for melting and they have been received as inputs, irrespective of the classification of ctd bar cuttings, they would also be eligible input as per notification issued under rule 57a, in view of their declaration covering ferrous scrap for remelting. i therefore find that the department's objection cannot be sustained and hence the order of the collector (appeals) does not call for any interference. appeal is therefore rejected.