2002 (5) TMI 302 - AT - Central Excise

Summary

Issues:
Classification of end cutting of wires and cables under Heading 74.04 of the Central Excise Tariff Act.

Analysis:
The appeal filed by M/s. CMI Ltd. questioned the classification of end cutting of wires and cables under Heading 74.04 of the Tariff. The Appellant argued that the waste arising during the manufacture of insulated wires and cables is non-marketable, and previous decisions by the Tribunal have established that waste and scrap of wires and cables are not excisable goods. The Commissioner (Appeals) upheld the classification under Heading 74.04 but raised concerns about the clarity of the demand of duty. The Appellant contended that the end cuttings are not excisable goods and relied on previous judgments to support their case.

In response, the Revenue argued that the end cuttings being sold by the Appellant contain metal content falling under Heading 74.04 as "Copper waste and scrap." They cited a decision by the Larger Bench of the Tribunal to support their position that waste arising during the manufacturing process should be classified under specific headings.

The Tribunal analyzed the submissions from both sides and noted that the Department treated the end cuttings as copper waste and scrap under Heading 74.04. However, no evidence was presented to show that the impugned goods were unserviceable pieces in the form of a mass of metal and insulating material. The Tribunal referred to previous decisions confirming that waste and scrap of wires and cables are not excisable goods. They also highlighted the argument made by the Revenue in a previous case regarding the classification of waste and scrap based on metal content, which was not addressed in the earlier decision. The Tribunal concluded that since waste and scrap of wires and cables are not excisable goods, the impugned Order was set aside, and the appeal was allowed.