2007 (1) TMI 170 - AT - Central Excise

Issue involved in this appeal is the classification of waste and scrap generated during the manufacture of Printed Circuit Board classifiable under Tariff Heading 85 of the Central Excise Tariff - in the absence of any tariff entry regarding waste and scrap of printed circuit board we find merits in the contentions of the appellants that waste and scrap of printed circuit board is not excisable. In view of the above, impugned order is set aside and the appeal is allowed

Summary

Issues involved:
Classification of waste and scrap generated during the manufacture of Printed Circuit Board under Tariff Heading 85 of the Central Excise Tariff.

Detailed Analysis:
The appellants, engaged in manufacturing Printed Circuit Boards, faced a demand for duty by the Revenue due to clearing waste and scrap without payment. The Revenue classified waste and scrap of Glass epoxy, Copper Laminated sheet, and Phenolic paper under different headings based on metal predominance. The appellants argued that waste and scrap of Printed Circuit Boards are not chargeable to Excise duty as there is no specific entry for them under Chapter Heading 85 of the Tariff. They relied on a Tribunal decision regarding waste and scrap of wire and cable not being classifiable based on metal content. The Revenue contended that the waste and scrap, containing various metals, should be classified based on metal predominance.

The Tribunal found that the appellants are involved in manufacturing Printed Circuit Boards under Chapter Heading 85 without a specific entry for waste and scrap of Printed Circuit Board. Referring to a previous Tribunal decision on waste and scrap of wire and cable, the Tribunal highlighted the guidelines for determining duty on waste and scrap. The Tribunal concluded that waste and scrap of wires and cables are not excisable goods, following a Delhi High Court decision and a previous Tribunal ruling. The Tribunal dismissed the Revenue's appeal against this decision, emphasizing that waste and scrap of Printed Circuit Board is not excisable due to the absence of a specific tariff entry. Consequently, the impugned order demanding duty was set aside, and the appeal by the appellants was allowed.

In summary, the judgment revolved around the classification of waste and scrap generated during the manufacture of Printed Circuit Board under the Central Excise Tariff. The Tribunal's decision was influenced by previous rulings on waste and scrap of wire and cable, emphasizing the absence of specific tariff entries for waste and scrap of Printed Circuit Board. The judgment favored the appellants, concluding that waste and scrap of Printed Circuit Board is not excisable, leading to the allowance of the appeal and setting aside the duty demand.