Customs, Excise and Gold Tribunal - Delhi
Collector Of Central Excise vs Garware Wall Ropes Ltd. on 7 May, 1999
Equivalent citations: 1999(65)ECC448, 1999(111)ELT498(TRI-DEL)
ORDER
P.C. Jain, Vice President
1. A very short question is involved in this appeal of the Revenue. Respondents herein are manufacturers of ropes of polypropylene and HDPE falling under Tariff Item 56.07. There is no dispute that in making the ropes, power is used by the respondents. However, after clearing the same on payment of appropriate duty they manufactured articles of ropes falling under Tariff Item 56.08. There is an exemption Notification No. 62/87-C.E., dated 1-3-1987 which gives exemption, inter alia, to articles of ropes .falling under Tariff Item 56.08 if made without the aid of power. The lower appellate authority has extended the benefit of the said Notification on the ground that articles of ropes have been made without the use of power. The power used in manufacturing the ropes would not be reckoned for manufacture of articles of ropes.
2. It is against the said finding that the Revenue has now come in appeal urging that power used in manufacture of rope should be reckoned towards manufacture of articles of ropes.
3. We have heard both sides. We are not inclined to agree with the submission of the learned JDR; Shri R.S. Sangia for the Revenue. Power was used in making raw-material for manufacture of articles of ropes. Those raw-material namely, ropes are separate commodity known to the market. It is also brought to our notice that the appellants are clearing the ropes on payment of appropriate duty to their other customers apart from making articles of ropes themselves. It is apparent that the power used for manufacture of ropes will not be reckoned towards manufacture of articles of ropes. The benefit of Notification No. 62/87-C.E., has been rightly extended by the lower appellate authority. Hence, we dismiss the appeal of Revenue.