2004 (8) TMI 579 - AT - Central Excise

Summary

Issues:
1. Appeal against order-in-appeal regarding clearance of Waste Scrap of Copper exceeding allowed limit.
2. Contention of appellants regarding presence of soldering elements in waste.
3. Dispute over wastage percentage allowed by Competent Authority.
4. Interpretation of wastage norms set by Competent Authority.
5. Decision on duty demand due to exceeding permitted wastage limit.

Analysis:
The appellants filed an appeal challenging the order-in-appeal passed by the Commissioner (Appeals) concerning the clearance of Waste Scrap of Copper beyond the permissible limit set by the Competent Authority. The appellants, engaged in transistor manufacturing, had wastage norms fixed by the Proper authority under the Ministry of Industries, allowing specific percentages of wastage for different inputs. The contention arose when the appellants argued that the waste, which included soldering elements like nickel, was within the permitted limits if the solder content was excluded from the calculation.

The Revenue argued that the total wastage allowed by the Competent Authority was exceeded by the appellants, justifying the duty demand. The Competent authority had allowed a specific percentage of wastage on inputs of Copper dust and Bottom length. However, the Adjudicating authority and the Commissioner (Appeals) interpreted the wastage norms to include all types of wastage, including solder contents, leading to the demand confirmation.

The Tribunal found that the Competent authority had fixed the wastage percentage for Copper dust and Bottom length specifically, not for all types of waste. The appellants' argument regarding the solder content on Bottom length affecting the wastage calculation was accepted, as it brought the wastage levels within the permissible limit set by the Competent Authority. Consequently, the Tribunal set aside the impugned order and allowed the appeal, emphasizing the need for a correct interpretation of the wastage norms granted by the Competent Authority to determine duty liability accurately.