SC to consider dutiability of cut-away HR coils as manufacturing 'scrap' / independent goods

SC issues notice to Revenue in appeal against Delhi CESTAT decision which confirmed excise duty demand on HR coils that were cut away during manufacture of MS spirally welded pipes; While affirming the adjudication order, CESTAT had rejected assessee’s claim that slitting of HR coils was a separate process which did not amount to manufacture; Appreciating the process of manufacture of spirally welded pipes, CESTAT had noted that cutting away of uneven edge of HR coils could not be considered as independent process inasmuch as it was process carried out by way of preparation in continuous process leading to finished product, viz. pipes; There was no dispute that pieces of HR coils which were cut away were nothing but scrap, it had to be considered as emerging in the manufacture of finished product only and therefore, the same was liable to excise duty; CESTAT had also rejected assessee’s claim of benefit under Notification No. 89/95-CE which exempted waste and scrap arising in course of manufacture of exempted goods, observing that while assessee claimed exemption under Notification No. 6/2006-CE to clear pipes, it also cleared goods on payment of excise duty : SC