1995 (4) TMI 190 - AT - Central Excise

Summary

Issues Involved:
1. Excisability and classification of waste and scrap of wires and cables.
2. Excisability and classification of scrap of PVC compound.
3. Ancillary matters and disputes concerning past clearances without physical supervision of Excise officers.

Summary:

1. Excisability and Classification of Waste and Scrap of Wires and Cables:
The Tribunal examined whether the waste and scrap of wires and cables are excisable and if they fall under Tariff Item 8544 of the Central Excise Tariff Act (CETA), 1985. The assessee argued that the scrap is unmarketable and not fit for use, hence not excisable. The Tribunal noted that the Central Board of Excise and Customs (CBEC) instructions and various judicial precedents support the view that scrap, which is unfit for its intended use, is not excisable. The Tribunal concluded that waste and scrap of wires and cables are not excisable goods and thus, their classification under CETA, 1985 does not arise.

2. Excisability and Classification of Scrap of PVC Compound:
The Tribunal addressed the excisability of scrap of PVC compound. The Assistant Collector had classified it under heading 3915.00 with a duty rate of 40% ad valorem, which the assessee initially accepted. However, the assessee later argued that the scrap should be exempt under Notification No. 53/88, which provides a nil rate of duty for waste, parings, and scrap of plastics under certain conditions. The Tribunal noted that this exemption requires factual verification to establish that the condition for exemption is fulfilled. Therefore, the Tribunal remanded the issue to the jurisdictional Assistant Collector for factual verification and appropriate findings.

3. Ancillary Matters and Past Clearances:
The Tribunal also considered ancillary matters, including past clearances of scrap without the physical supervision of Excise officers. The Tribunal directed that documentary evidence should be produced to support the claim that the materials cleared were indeed scrap. The Department was directed to verify such evidence to ensure compliance with the relevant excise regulations.

Conclusion:
The Tribunal upheld the Collector (Appeals)' order that waste and scrap of wires and cables are not excisable goods. The issue of the extent of exemption for scrap of PVC compound was remanded to the jurisdictional Assistant Collector for further verification. The appeals were disposed of accordingly.