1999 (5) TMI 117 - AT - Central Excise

Summary

Issues involved:
1. Benefit of Notification No. 53/88 on duty paid plastic granules and copper wire scrap.
2. Interpretation of waste and scrap arising during the manufacture of wires and cables.
3. Eligibility of plastic scrap contained in cut pieces of wires and cables for Notification No. 53/88-C.E.

Analysis:

Issue 1: Benefit of Notification No. 53/88
The case involved appeals regarding the benefit of Notification No. 53/88 on duty paid plastic granules and copper wire scrap. The respondents undertook plastic insulation of copper wire, resulting in various forms of plastic scrap. The Assistant Collector had granted benefits on some categories of plastic scrap but denied on others, claiming they were generated after wire and cables were manufactured.

Issue 2: Interpretation of Waste and Scrap
Upon appeal, the lower appellate authority ruled in favor of the respondents, stating that the scrap arose during the manufacturing process of wires and cables and not after their completion. The authority highlighted that the waste and scrap were generated during the manufacturing process and, therefore, should be considered as part of the manufacturing process, making the respondents eligible for the benefits under Notification No. 53/88-C.E.

Issue 3: Eligibility of Plastic Scrap
The Revenue argued that the waste and scrap arose during the manufacturing process of electric wire and cables and not from PVC granules. However, the Tribunal disagreed, affirming that the plastic scrap contained in the cut pieces of wires and cables was entitled to the benefits of Notification No. 53/88-C.E. as the plastic sheathing was made from duty-paid granules. The Tribunal upheld the lower appellate authority's reasoning, concluding that the plastic scrap was eligible for the notification benefits.

In conclusion, the Tribunal rejected the Revenue's appeal, affirming the eligibility of the plastic scrap contained in the wires and cables for the benefits under Notification No. 53/88-C.E. The decision was based on the understanding that the plastic sheathing was made from duty-paid granules, justifying the respondents' entitlement to the notification benefits.