9911796707
TMI Blog1990 (8) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... nd have a factory situated at Pimpri, Poona. The petitioners manufacture nylon yarn required for the purpose of textiles, fishing nets and parachute cord since August 1965. Caprolactam manomer is a raw material which goes through the process of polymerisation and polyamide chips so produced are intended for the manufacture of nylon yarn. During the process of manufacture of nylon yarn, waste occurs during different stages. The stages are (i) during the process of polymerisation, (ii) during spinning, (iii) take up waste and (iv) draw twister waste. The wastes are an unavoidable part of the process of manufacturing nylon yarn. The polyamide chips intended for use in the manufacture of nylon yarn for manufacture of fishing nets and parachute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for manufacture of fishing nets and parachute cords and therefore the waste is liable to payment of duty. The decision recorded by the Assistant Collector was confirmed in appeal by order dated January 2, 1967 by Collector of Central Excise, Pune. The Collector concurred with the findings recorded by the Assistant Collector. The revision application preferred by the petitioners before the Government of India, Ministry of Finance, met with the same fate. The order of the three authorities are under challenge in this petition. 4. Shri Parikh, learned counsel appearing on behalf of the petitioners, submitted that Item 15A of the Central Excise Act does not provide for payment of duty on the waste. The learned counsel urged that waste arises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e emerges. It was further held that the process to fall within the ambit of expression "manufacture" must have some relation to the manufacture of the finished products. The waste is obtained not by any process of manufacture but in the course of manufacturing and processing to produce the end product. The waste is obtained in the process of manufacture and cannot be charged for excise duty. The Delhi High Court also referred to Item No. 15A which is in existence after 1982 and which specifically includes the waste and scrap by Explanation III. We are in agreement with the view taken by the Delhi High Court that the intention of the legislature to cover waste or scrap in relation to a manufacture is required to be specifically mentioned in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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