1990 (6) TMI 136 - AT - Central Excise

Summary

Issues:
Classification of waste materials under Central Excise Tariff - Whether siporex waste, siporex powder, siporex aggregate, and siporex broken are excisable goods under Tariff Item 68.

Analysis:
The appellants manufactured building materials, including waste products categorized as siporex waste, siporex powder, siporex aggregate, and siporex broken. They claimed Nil rate of duty for these waste materials, arguing they were not excisable goods. The Central Excise authorities classified them under Tariff Item 68. The Collector of Central Excise (Appeals) upheld the classification for some waste categories but exempted siporex powder. The appeal was made challenging this decision.

The appellants contended that the waste products did not involve manufacture and were not excisable. They cited previous Tribunal judgments and legal principles to support their argument. The respondents argued that the waste products were sold, indicating their liability for duty. They emphasized the use of power and labor in the production process, indicating manipulation and transformation.

The respondents further argued that even if power was not directly used in producing siporex broken, its origin from goods processed with power made it liable for duty. They referred to conflicting Tribunal judgments on similar waste products and highlighted the Supreme Court's stance on the transformation of raw materials into new commodities for excisability.

The Tribunal analyzed the definitions of manufacture and excisability from relevant legal precedents. They found that siporex broken involved manipulation and transformation, making it excisable. Siporex waste, however, was deemed a waste product without voluntary or involuntary action, thus not liable for excise duty. The Tribunal considered various judgments cited by both parties but focused on their applicability to the specific facts of the case.

In conclusion, the appeal was allowed for siporex waste, exempting it from duty, while rejecting the appeal for siporex aggregate and siporex broken, deeming them excisable goods under Tariff Item 68. The judgment carefully considered the nuances of each waste product's production process and its classification under the Central Excise Tariff, aligning with legal principles and precedents to reach a balanced decision.