1999 (6) TMI 99 - AT - Central Excise

Fents and rags - Concessional rate of duty under Notification No. 6/88-C.E. to five per cent of the total quantity of clearances.

Summary

The appeal was about concessional assessment of fents and rags under Notification No. 6/88, which prescribed a lower duty rate of 5%. The dispute was whether the 5% eligibility should include clearances for further processing. The Tribunal ruled that all clearances, including those for further processing, should be considered for the exemption calculation. The decision was based on the understanding that duty is levied at various manufacturing stages and waste can occur, so excluding processing clearances would be arbitrary. The appeal of the Revenue was dismissed, confirming the impugned order.