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TMI Blog2001 (10) TMI 168X X X X Extracts X X X X X X X X Extracts X X X X ..... ants, M/s. Aksh India Ltd. and M/s. CMI Ltd., manufacture fibre optical cables; that as per one of the conditions of supply to Department of Telecommunication (DOT), the supplies are to be made only when the DOT have carried out necessary inspection/testing of the goods and have approved the goods for supply to the DOT; that the cables manufactured by them are inspected by the representatives of DOT who carry out the inspection on a piece of cable obtained from the stock which is converted into small pieces (scrap); that as per Bhuvneshwar Commissionerate's Instruction No. 54-GI-50-94, dated 6-6-94 as reported in [1994 (53) ECR 103 C] the production is to be accounted for in Column 15 of the RG1 Register after the electric wires and cables ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ..…...that no excise duty can be charged on the piece of cables removed from the drums, and which cables get destroyed in the course of mandatory quality control test." 3.1 The learned Advocate also mentioned that the said decision has been affirmed by the Supreme Court as the Civil appeal filed by the Commissioner was dismissed by the Supreme Court as reported in [2001 (127) E.L.T. A49 = 2001 (42) RLT (F11). He also relied upon the following decisions :- (i) CCE v. General Cement Products (P) Ltd., [1989 (39) E.L.T. 689], (ii) Union Carbide Ltd. v. CCE, Calcutta-II [1994 (74) E.L.T. 381], (iii) Bayer Diagnostic India Ltd. v. CCE, [2001 (133) E.L.T. 140 (T)] 3.2 Finally the learned Advocate mentioned that in any case there is no loss o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DOT and accordingly if a particular customer is interested in a particular test, the excisable goods must be cleared on payment of duty. 5. We have considered the submissions of both the sides. We find that the issue involved in the present matter is squarely covered by the decision in the case of Traco Cable Com. Ltd. supra. In the said case the Appellants manufactured underground jelly filled telephone cable, the major portion of which was supplied to the DOT. Three metres of cables from each drum were cut for testing purposes. The Tribunal held that "three metres length of cable taken out from the drum becomes useless while the entire quality control tests are carried out. Because of this, those portions of the cable used for mandatory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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