9911796707
TMI Blog2000 (11) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... led by the Revenue, the Commissioner (Appeals) classified the same under Heading 8607.00. 2. After hearing both sides duly represented by Shri B.C. Debnath, learned Consultant and Shri B.J. Mookherjee, learned Advocate for the appellants and Shri R.K. Roy, learned JDR for the Revenue, it is seen that Rejected Wheels and Axles emerged on two different stages of manufacturing activities i.e. at the forging stage operation and the machining stage operation. The Department has accepted Assistant Commissioner s classification under sub-heading 7204.90, as far as rejections occurring at forging stage are concerned, but has disputed the classification of the rejections occurring at the partly or fully machined stage. For better appreciation, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinings are carried at four or five stages before these can be converted into wheels according to Railway specification. At every stage of machining scrap arises including rejections of wheels which have not attained the required specification. The rejections that take place immediately after forging are due to metallurgical defects. Those which have no metallurgical defects are put to machining during which at every stage testing/inspections are carried out and those found unfit are rejected. The machined wheels that stand the test/inspection are called okay wheel. 3.1 Likewise, in the axle unit, axle quality bloom is subjected to heating and forging. The forged axles which are found metallurgically defective on testing are rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in regard to the goods which have been claimed as rejected materials by the appellants. The rejections have occurred at various stages of machining of wheels and axles which, theoretically speaking, can range from stage one to last stage. The appellants are admittedly clearing the said rejection as waste material. It does not appeal to mind that if such wheels and axles were capable of being utilised as wheels and axles and capable of being marketed as such, no prudent businessman would sell their goods as waste and scrap. It is seen that the Tribunal in the case of Collector of Central Excise v. PCC-Pole Factory reported in 1989 (41) E.L.T. 676 (T) has held that breaking and scrapping of defective cement poles into broken poles is not a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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