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TMI Blog1991 (12) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... the loss, Allow the appeal set aside the order of the High Court and the Revenue Authorities and direct the respondents to give the benefit of exemption of duty in respect of loss in the process of manufacture. - 4918 of 1985 - - - Dated:- 10-12-1991 - K. Jagannatha Shetty, V. Ramaswami and Yogeshwar Dayal, JJ. [Judgment per : V. Ramaswami, J.]. - Under Section 3 of the Central Excises and Salt Act, 1944 excise duty is payable on all excisable goods produced or manufactured in India at the rates set forth in the Schedule to the Central Excise Tariff Act. Item 26A of the Schedule to the Tariff Act reads as follows : "26A. COPPER AND COPPER ALLOYS CONTAINING NOT LESS THAN FIFTY PER CENT BY WEIGHT OR COPPER. (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the appellant that it was entitled to exemption from excise duty under this Notification on the quantity of the raw material used by it in the manufacture of pipes and tubes including the manufacturing loss the Department contended that the exemption from excise duty was available only on the quantity of copper contents available in the weight of finished products and not on the entire quantity of copper used in the manufacture of pipes and tubes. Though there was some dispute at an initial stage as to whether in the manufacture of pipes and tubes any quantity of raw material is lost or as a result of the said loss during the process of manufacture the weight of the final finished product did not represent the weight of the metal used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y actually forms part of the pipes or tubes alone has to be taken into account for the purpose of rebate on duty. 4. We have considered the rival contentions of the parties. It is seen from the facts as appear from the pleadings and the orders that due to cutting the copper wire, melting in electric furnaces and re-melting in the process of manufacture a portion of the copper and copper alloys in its crude form which was used as the raw material is permanently lost. We are not concerned as to the exact quantity of loss in this case but with a question of interpretation as to whether the duty referable to that portion which is lost also should get rebate while assessing for excise duty on the pipes and tubes of copper and copper alloys. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al product. The relief, as we understand the Notification, that has to be given to the manufacturer was in respect of the duty already paid on the raw material used in the manufacture of the final product. That is the relief has to be given to the extent of the duty paid on the input material and not with reference to the quantity which ultimately forms part of the final product. This is also the ratio of the judgment in M/s. Swadeshi Polytex Ltd. v. Collector of Central Excise [1990 (2) S.CC 358 = 1989 (44) E.L.T. 794 (S.C)]. So understood we have no doubt that even the manufacturing loss will have to be taken into account in determining the relief to be provided under the said Notification. We are also unable to understand the argument of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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