2004 (12) TMI 405 - AT - Central Excise

Summary

Issues: Classification of waste asbestos sheets for duty payment.

In the judgment delivered by the Appellate Tribunal CESTAT, Mumbai, the issue revolved around the classification of waste asbestos sheets for duty payment. The appellants purchased duty-paid asbestos sheets for manufacturing 'Gaskets' and availed credit of duty paid. However, duty was demanded on the remnants of asbestos sheets that were left over after the Gaskets were purchased out of the sheets. These remnants, which were unsuitable for further use as sheets or for Gasket making, were sold as waste by the appellants.

The notice issued classified the entity sold by the appellants under Heading 6805.90 as "Articles of asbestos sheet," acknowledging them to be in the nature of 'waste' as per Para 2 of the Notice issued. However, upon examining the tariff and the head notes of 68/2 in HSN for Articles of Asbestos, it was concluded that the entity could not be classified thereunder, similar to the classification for Cork under Chapter 45. The unusable 'waste' material was found to be not exigible under the law. Referring to previous decisions, it was established that just because the purchased out insurable remnants were sold, they could not be considered a marketable commodity. The orders of the lower authority were deemed unsustainable as no contradictory evidence was presented.

Consequently, the appeal was allowed by the Appellate Tribunal CESTAT, Mumbai. The judgment emphasized the importance of proper classification under the law and highlighted the precedents that supported the appellants' position in this case. The decision provided relief to the appellants based on consistency with past orders and the lack of valid reasons to deny the relief granted in this matter.