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TMI Blog2002 (1) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... c glazed tiles falling under sub-heading 6906.10 of the Schedule to the CETA, 1985 are entitled to avail Modvat credit on input, namely, ceramic glazed frit which were consumed in broken tiles. Following the two earlier decisions of this Tribunal CCE v. Somany Pilkington (P) Ltd. [1992 (59) E.L.T. 451 (T)] and Orient Ceramic Industries Ltd. v. CCE [1993 (65) E.L.T. 426 (T)], the Commissioner (Appeals) took the view that the broken ceramic glazed tiles are different from ceramic glazed tiles, it cannot be considered as marketable goods and therefore, not excisable to duty. It was also held that the manufacturers are entitled to the benefit of Modvat credit on input used in such broken tiles by virtue of the provisions contained under Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by availing exemption under Notification No. l39/90-C.E., dated 3-9-90. Admittedly, these broken tiles are sold in the market by weight. According to the respondents, the broken tiles would constitute less than 0.1% of their total manufacture and are sold at fractional value of the regular tiles, they are to be treated as waste material. In support of their contention they relied on the above mentioned two decisions of this Tribunal wherein it has been held that broken tiles belong to a category distinctly apart from the category of glazed tiles, they cannot be considered marketable and that they are not excisable to duty. It is submitted before us that the appeals filed by the Revenue from these two decisions were dismissed by the Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise of the powers conferred by sub-section (1) of Section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts broken tiles, falling within Chapter 69 of Schedule to the Central Excise Tariff Act, 1985(5 of 1986), from the whole of the duty of excise leviable thereon which is specified in the said Schedule : Provided that an officer not below the rank of an Assistant Collector of Central Excise is satisfied that such broken tiles are in the nature of scrap and not capable of being used as tiles." The above would show that exemption is granted only in respect of such broken tiles which are in the nature of "scrap" and not cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not specified as a final product under Rule 57A." The contention is that since the word "scrap" is not used in sub-rule (1) the respondents herein cannot claim the benefit of the Modvat credit. According to the learned Departmental Representative it is Rule 57C that has to be applied in the present case. 8.We do not find much merit in this contention also. The word "scrap" is used, as understood in commercial parlance to mean "waste". It was so observed by the Apex Court in Tata Iron Steel Co. Ltd. v. CCE - 1995 (75) E.L.T. 3 (S.C.). If we refer to decisions of the Tribunal in relation to the claims under Rule 57D it can be seen that the words "waste" and "scrap" are used in synonimous with each other [CCE, Bombay-II v. Tarapur Ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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