9911796707
TMI Blog1991 (10) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Tariff. 2. The appellants have submitted that they are engaged in the manufacture, among many things, of the goods chargeable to duty under Chapter 39 of Central Excise Tariff, 1985. They had filed classification list and price list from time to time, with the proper officer in accordance with Rule 173B and Rule 173C respectively and were approved from time to time after scrutiny. They submit that after the introduction of new Central Excise Tariff Act, 1985, they file classification list for the various items manufactured by them including polymethyl methacrylate sheets referred to shortly as "acrylic sheets" in the discharge of its obligation under Rule 173B of the rules. 3. They contended that under compulsion from the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at this stage that small pieces of the dimensions of less than one foot result as waste and scrap. The appellants contended that the waste and scrap arising during the course of manufacture are unavoidable one and quite different from and cannot be equated with the parent material. They contended that the waste and scrap of acrylic sheets was not the product of application of any labour or manipulation pertaining to any process of manufacture within the contemplation of Section 2(f) of the Central Excises and Salt Act, 1944. They contended that the impugned goods waste and scrap of acrylic sheets did not constitute goods and being non-excisable, it is not dutiable and hence not classifiable under TI 3906.10 of Central Excise Tariff as held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the same items have now, under new tariff, been distributed under TI 3901 to 3904. He contended that acrylic sheets fall under TI 3920.00 and therefore its scrap cannot fall under 3906.10 of Central Excise Tariff and hence the reason given for classification by lower authorities was not sustainable. He contended that the waste and scrap of acrylic sheets were not capable of moulding. He contended that in Apna Industries v. Collector of Central Excise as reported in 1989 (43) E.L.T. 510, it was held that acrylic scrap was not capable of being classified under TI 15A (1). He relied on the following rulings : 1. Asiatic Oxygen Ltd. v. Collector of Central Excise - 1989 (44) E.L.T. 718 (Tribunal) 2. Apna Industries v. Collector of Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Jr.D.R. was not applicable to the facts of the case. He also submitted that Note 6 to Chapter 39 was also not relevant in this case. 7. We have carefully considered the submissions made by both sides and perused the records. The question that arises for our consideration is as to whether it was proper for the Collector (Appeals) to have confirmed and approved the classification done by Assistant Collector, in absence of Assistant Collector following the procedure laid down under Rule 9B read with Rule 173B of the Central Excise Rules, 1944. The facts narrated in this case clearly indicate that the Assistant Collector had compelled the appellants to file classification list in respect of the impugned goods, despite the protest of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him for determining the case before him. Thereafter he was required to have given a reasoned order. In Collector of Central Excise v. Muzaffarnagar Steels Ltd. as reported in 1989 (44) E.L.T. 552, the Tribunal observed as follows in para 13 : "The Rule 173B providing for the filing of classification list clearly shows that what is required of the Assistant Collector is the approval "after such enquiry as he deems fit". The approval of classification list is an important part of the process of assessment and, therefore, the Assistant Collector is required to be very careful and is expected to apply his mind before according approval. He is entitled to and indeed required to make such inquiries and summoned such information as may be called ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dt., Central Excise and Customs. Petitioner shall appear before him on 11-2-1991 and the Assistant Collector, Customs shall decide the matter in accordance with law within a period of 10 days, thereafter."
10. Therefore, respectfully following the ratio of the above rulings, we set aside the impugned order and remand the matter to the Assistant Collector for de novo consideration of all the pleas of the assessee and follow the procedure laid down under Rule 9B and Rule 173B read with Rule 233B of Central Excise Rules regarding approval of the classification list of the impugned product and pass a reasoned order thereon, after affording full opportunity to the appellants, expeditiously. Ordered accordingly. X X X X Extracts X X X X X X X X Extracts X X X X
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