1991 (5) TMI 145 - AT - Central Excise

Summary

Issues:
- Appeal against order passed by Collector of Central Excise (Appeals)
- Classification of aluminium conductors and aluminium wires for duty purposes
- Chargeability of duty on aluminium wires cleared for captive consumption
- Applicability of Notification No. 187/83 dated 9-7-1983

Analysis:
1. The Collector of Central Excise, Hyderabad filed appeals against orders passed by the Collector of Central Excise (Appeals), Madras, which disposed of multiple appeals. Supplementary appeals were filed by the department with requests for condonation of delay, which were granted as the original appeals were filed on time.

2. The appeals raised similar issues regarding the classification of aluminium conductors and aluminium wires, which were addressed collectively in a common order.

3. The respondents manufactured aluminium conductors known as all aluminium conductors (AAC) or aluminium conductors steel reinforced (ACSR), with specific characteristics and uses.

4. The department contended that duty was applicable to bare aluminium wires produced during the manufacturing process, while the respondents argued against double taxation as both wires and conductors were classified under the same tariff item.

5. The department argued that conversion of aluminium wires into conductors constituted the manufacture of a new item, subject to duty even if the conductors were already taxed.

6. The respondents cited previous Tribunal decisions to support their position that levying duty on both wires and conductors would amount to double taxation, referencing specific cases.

7. The main issues for consideration were whether the conversion of wires into conductors constituted manufacturing a new product and whether duty was chargeable on wires cleared for captive consumption.

8. The Tribunal's decision in a related case was referenced, emphasizing that taxing wires and conductors under the same tariff item twice was not permissible.

9. Another Tribunal decision was cited, reinforcing the principle that duty collected on conductors precluded further taxation on the wires used in their production.

10. Based on the precedents and legal principles discussed, the appeals were dismissed as duty had already been levied on the final product, and no further duty was applicable to the wires used in manufacturing.

This comprehensive analysis highlights the key legal arguments, precedents, and conclusions drawn in the judgment regarding the classification and duty implications of aluminium conductors and wires.