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2018 (7) TMI 1595 - AT - Central ExciseManufacture - process of cleaning of scrap rubber to crumb rubber - whether the process amounting to manufacture or not? - Held that:- If conversion of old rubber into crumb rubber powder does not amount to manufacture, a process of manufacturing crumb rubber from scrap rubber should not be an act of manufacture. Moreover, in the appellant’s case, they are drawing the scrap rubber from rubber tree laces and cup lumps which are collected from the tree as a post-harvest practice. The activity undertaken by the appellants is more in the nature of segregation of different types of rubber produced naturally and to convert it into crumb rubber. The burden to prove that there is manufacture is not discharged by the department beyond reasonable doubt - whereas the appellants have produced the certificate issued by the Rubber Board but the department has not produced any evidence to negate the certificate thus issued. The conversion of scrap rubber into rubber powder does not amount to manufacture as the department’s basic contention on the manufacture itself does not flows water other arguments - appeal allowed - decided in favor of appellant.
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