Customs, Excise and Gold Tribunal - Mumbai
Perfect Circle Victor Ltd. vs Commissioner Of Central Excise on 1 December, 2004
Equivalent citations: 2005(180)ELT496(TRI-MUMBAI)
ORDER S.S. Sekhon, Member (T)
1. Appellants purchase duty paid asbestos sheets for manufacture of 'Gaskets' and avail credit of duty paid. Duty was demanded on remnants of asbestos sheets, left over, after Gaskets are purchased out of the sheets. Such remnants, which cannot be further used, as sheets, or for Gasket making, are sold as waste by the appellants.
2. According to the notice issued, the entity so sold by the appellants was to be classified under Heading 6805.90 as "Articles of asbestos sheet" while admitting them to be in nature of 'waste' as per Para 2 of the Notice issued. On perusal of the tariff and on reading of the head notes of 68/2 in HSN for Articles of Asbestos, the entity cannot be classified thereunder as is the case for Cork under Chapter 45. Such 'waste' unusable material is thus found to be not exigible "under the law. Following the decisions in the case of 1999 (113) E.L.T. 420; 2003 (157) E.L.T. 272; 1998 (100) E.L.T. 513; 1995 (77) E.L.T. 268 (S.C); merely because such purchased out insurable remnants are sold, the same can be considered to be marketable commodity. From the orders of CC (Appeals), in appellant's own case vide Order No. AA75/94, dated 28-2-1994 were granted relief on the very same issue. We find no reason to deny the same. Therefore the orders of lower authority cannot be sustained as nothing contrary is shown.
3. Appeal is thus allowed.