1997 (7) TMI 249

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..... spondents. [Order per : A.C.C. Unni, Member (J)]. - This appeal is against the order of the Collector of Central Excise, Cochin dated 25-3-1988 by which the Collector had confirmed a duty demand of Rs. 1,74,941.78 against the appellants. 2. The appellants are manufacturers of electro-mechanical electronic components like switches, relays and potentiometers. The appellants purchase silver .....

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..... trips was also exempted from duty by Notification No. 53/86. Thereafter appellants were sending the remnant portion of silver strips for reprocessing without payment of duty on the basis of Notification No. 53/86. Since silver material as such was an exempted item, appellants also filed classification list to that effect which was approved by the Assistant Collector. 3. The appellants were i .....

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..... es. 7. On behalf of the appellants it was submitted that the Collector's finding that the remnant portion of silver strips sent by the appellants for reconditioning was classifiable as 'scrap' was erroneous. Advocate submitted that the term 'scrap' normally meant something which was contaminated and was of lesser value than the original material. Scrap of metal can be made use of only to a m .....

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..... e quantity was completely consumed by converting them into parts. During the course of the proceedings he also showed samples of silver strips which were punched for converting into parts. He therefore submitted that the Collector had gone wrong, in concluding that the punched remnants of silver strips were classifiable under sub-heading 7101.80 as waste and scrap of silver disentitling the appell .....

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..... ly lost its original shape because of punching and thereby lost its shape as a strip. The remaining portions of the silver strip after punching have not lost their purity. It still retains the same purity as the original silver strips before punching. When such strips are sent back for remelting and re-rolling for converting them into silver strip again, they donot lose their intrinsic worth as pi .....

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