9911796707
TMI Blog1997 (7) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... This appeal is against the order of the Collector of Central Excise, Cochin dated 25-3-1988 by which the Collector had confirmed a duty demand of Rs. 1,74,941.78 against the appellants. 2. The appellants are manufacturers of electro-mechanical electronic components like switches, relays and potentiometers. The appellants purchase silver strips/coils containing 90% silver for purposes of fabr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3/86. Thereafter appellants were sending the remnant portion of silver strips for reprocessing without payment of duty on the basis of Notification No. 53/86. Since silver material as such was an exempted item, appellants also filed classification list to that effect which was approved by the Assistant Collector. 3. The appellants were issued a Show Cause Notice dated 15-12-1987 asking them to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r s finding that the remnant portion of silver strips sent by the appellants for reconditioning was classifiable as scrap was erroneous. Advocate submitted that the term scrap normally meant something which was contaminated and was of lesser value than the original material. Scrap of metal can be made use of only to a much lesser extent and that too after refining. As per the definition of was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e course of the proceedings he also showed samples of silver strips which were punched for converting into parts. He therefore submitted that the Collector had gone wrong, in concluding that the punched remnants of silver strips were classifiable under sub-heading 7101.80 as waste and scrap of silver disentitling the appellants from claiming the benefit of exemption under Notification No. 53/86. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p. The remaining portions of the silver strip after punching have not lost their purity. It still retains the same purity as the original silver strips before punching. When such strips are sent back for remelting and re-rolling for converting them into silver strip again, they donot lose their intrinsic worth as pieces of silver and become scrap. We therefore find that the appellants contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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