2007 (10) TMI 476 - AT - Central Excise

Summary

Issues: Classification of damaged electric lamp caps under Central Excise Tariff Act, 1985.

In this judgment by the Appellate Tribunal CESTAT, the issue revolves around the classification of damaged electric lamp caps under the Central Excise Tariff Act, 1985. The lower Appellate Authority classified the caps under sub-heading No. 8539.00 covering electric lamps, while the Revenue contends they should be classified under sub-heading 7602.00 as Aluminium Scrap with a 20% duty.

The Department relies on Section XV of the Tariff, defining waste and scrap as metal waste from manufacture or mechanical working of metals not usable due to various reasons. The damaged goods, mainly of aluminium, are argued to be definitely not usable as they cannot be shown to be capable of being used as part of an electric lamp. The evidence provided by the respondents, a trader's letter claiming the caps are sold for lamp manufacturing, is deemed insufficient as the trader is not the actual user of the goods.

The Tribunal agrees with the Revenue, concluding that the damaged lamp caps are waste and scrap of aluminium falling under sub-heading No. 7602.00. The impugned order is set aside, and the appeal is allowed in favor of the Revenue.