Keshav Cement Ltd. manufactures grey and white cement at Rajasthan. It repaired the worn-out parts of cement manufacturing plant at its workshop. During the process of repair, scrap of M.S. channels, M.S. beams, M.S. ang

Keshav Cement Ltd. manufactures grey and white cement at Rajasthan. It repaired the worn-out parts of cement manufacturing plant at its workshop. During the process of repair, scrap of M.S. channels, M.S. beams, M.S. angles and cutting was generated. It removed the said scrap without paying excise duty from the factory. Department has issued a show cause notice demanding the duty on the said scrap contending that the process of generation of scrap and waste amounted to 'manufacture' in terms of section 2(f) of the Central Excise Act, 1944. Examine with the help of decided case law, whether the contention of the Department is correct.