Customs, Excise and Gold Tribunal - Bangalore
M/S Traco Cable Company Ltd., vs The Commissioner Of Central Excise, ... on 19 June, 2001
Equivalent citations: 2001(133)ELT659(TRI-BANG)
ORDER Shri G.A. Brama Deva, Member (J)
This is an appeal filed by M/s Traco Cable Col, Ltd. When the matter was called Shri R.S. Srinivas appearing for the appellant submitted that the issue involved herein has already been considered by SRB, Chennai and as per Order No. 2485-2489/99 dated 21.9.99 decided that item in question is not excisable. it was observed therein that.....
"The appellate authority has not considered the contract for supply of goods nor entered any finding whether for purchase of the cables by the DOT it was a condition of sale that the cables should undergo quality control test and whether testing of the cables was a compulsory requirement in terms of the contract."
2. It was also held therein that.....
"in the facts and circumstances of this case, it is crystal clear that, quality control test is virtually a destructive test. In other words, three metre length of cable taken out from the drum becomes useless while the entire quality control tests are carried out. Because of this, those portion of the cables used for mandatory quality control test cannot be considered as excisable goods manufactured."
As a result, it was held that no excise duty can be charged on the piece of cable removed from the drum, and which cables get destroyed in the course of mandatory quality control test.
3. Since the issue involved herein has already been settled by the Tribunal in the aforesaid case, following the same we accept the contention of the party and accordingly, appeal is allowed with consequential relief if any.
(Pronounced and dictated in open court)