After working of these sheets for the manufacture of parts of scooters some portions of the sheets remain.
It is only some of these pieces of steel which is used for the manufacture of ancillary items and the companyrect tariff heading under which these pieces would fall is 7203.20 the rate being Rs.
715 per ton is paid by it under Tariff Heading 7212.50.
For the purpose of manufacturing of scooters and parts and accessories thereof the appellant purchase duty paid steel sheets on which the duty of excise at the rate of Rs.
With effect from 1st March, 1986 the Modvat Credit Scheme was introduced to give credit to the manufacturers in respect of the duty of excise already paid by them and allow them the benefits of set off of such credit of duty already paid against the duty payable them on the scooters as well as parts and accessories thereof.
365/ per ton.
The companytention of Sh.
Some of these portions are used by the appellant for the manufacture of small parts of the scooters.
A second appeal to the Tribunal met with the same fate hence this appeal.
On behalf of the appellant, Sh.
In the alternative it was submitted by him that these cut piece would fall under heading 7210.10.
Joseph Vellapally, learned senior companynsel, has companytended that after the sheets have cut and used for the manufacture of scooter, the part which remains is only waste and scrap.
The companytention of the appellant was neither accepted by the assessing authority, i.e., Assistant Collector number by the Collector, Appeals.
Kirpal, J. The appellant is engaged in the manufacture and sale of two wheeler vehicles and it has been granted central excise licence by the respondent for the manufacture of the scooters together with the parts and accessories.
