2000 (8) TMI 537 - AT - Central Excise

Summary

Issues Involved:
Excisability of glass fibre/wool waste arising in the course of processing of filament/rovings of glass from raw material/inputs.

Detailed Analysis:

Issue 1: Excisability of Glass Fibre/Wool Waste
The appellants contested show cause notices demanding duty for clearing glass fibre wool waste, arguing it was not excisable as it was not mentioned in the schedule appended to the Central Excise Tariff Act and their classification lists were approved by the Revenue department. The Assistant Commissioner disagreed and confirmed duty demands. The Commissioner (Appeals) upheld the orders. The appellants challenged the orders, claiming the waste was not excisable. The counsel cited legal precedents to support the argument that excise duty is leviable only on manufactured and marketable goods. The JDR argued the waste was usable and excisable. The Commissioner (Appeals) held the waste was not waste but fibres/filaments usable for reinforcement or manufacturing. However, no material evidence was provided to support this finding.

Issue 2: Marketability of the Product
The Commissioner (Appeals) did not provide any findings on the marketability of the glass fibre wool waste. The appellants disputed the product's marketability, stating no evidence was presented to prove it. The Commissioner (Appeals) failed to demonstrate the marketability of the product in question, lacking references to supporting materials or documents.

Issue 3: Classification of the Product
The disputed product, glass fibre wool waste, was classified under Chapter 70 of the Central Excise Tariff Act by the authorities below, covering the final product of the appellants. However, no substantial evidence for this classification was presented in the impugned orders by the Commissioner (Appeals) while confirming the Assistant Commissioner's orders.

Issue 4: Legal Precedents and Re-examination
The judgment highlighted legal precedents such as Moti Laminates, Balaji Enterprises, and Union of India v. Indian Aluminium Company P. Ltd., emphasizing the tests of manufacture and marketability for levying excise duty. The authorities below were criticized for not applying the law laid down by the Apex Court in these cases. The judgment concluded that the matter required re-examination by the adjudicating authority in light of the legal precedents and evidence on record.

In conclusion, the judgment set aside the impugned orders and remanded the cases for readjudication regarding the excisability of the glass fibre/wool waste, emphasizing the need to consider the legal principles established by the Apex Court in relevant cases.