TMI Blog1996 (12) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Advocate appearing for the assessees stated that the generation of waste during the manufacture of staple fibre was an accepted phenomenon. The tow is run through crimping and coating machine. The waste generated at this stage is crimped and uncut waste. While the good tow is being cut process waste may arise on account of entanglement, breakage, etc. Tow, cut into more than required length is called extra length waste. Where due to fault, some fibres are cut into varying length, the waste is called mixed length waste. Right from 1973, the appellants were filing classification lists for staple fibre as well as the varieties of wastes. The Department insisted that a classification list be filed before each clearance and that each clearance would be permitted under physical supervision, and on visual examination by the officer and on drawal of sample for examination in the laboratory. Shri Lakshmikumaran, ld. Advocate referred to a number of letters exchanged by the Department with the appellants indicating this position. In 1982, vide letter dated 13-7-1982, the Assistant Commissioner informed the appellants that all the earlier classification lists had been approved in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the consignments cleared was wrong. On these counts, it was urged that the order be set aside. 4. Shri J.M. Sharma, ld. JDR stated that the law relating to filing of classification lists requires an exhaustive description to be given of the excisable goods. Where complete information is not given, the charge of suppression can be sustained. He stated that the description given in the invoices was different from that given in the classification list. He stated that denier was used in the description of good fibre and not for describing waste. In certain invoices, the denierage was show, which would establish that the clearances were actually of good fibre and not of waste. He stated that the production record shows excessive generation of waste. This would support the presumption that good fibre was cleared in the guise of waste. He stated that the (sic) note was general in terms and cannot override the specific findings in a test report. He stated that the Board s letter dated 18-12-1989 was general in nature and do not support the appellants contentions. On the point of limitation, Shri Sharma stated that the description M.L./O.L. appearing in the invoices shows that what wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f man-made fibres (other than mineral fibres) and man-made filament yarns." 9. Fibre waste was a commodity known in the market. The waste fibre could be put to several uses. Non-cellulosic waste for recovering caprolactum was duty-free in terms of Notification No. 26B/C.E., dated 18-3-1972. Waste yarn falling under this item was specifically defined in the explanation to Notification No. 172/72-C.E., dated 24-7-1972. The mere fact that some of the waste could be disentangled and used in the place of fibres, was acknowledged vide Notification No. 43/80-C.E., dated 24-4-1980 which exempted waste used in the manufacture of man-made fibres. Polyester fibre, which manufactured from waste by recycling was exempted from duty vide Notification No. 16/82, dated 14-2-1982. Therefore, the belief of the Commissioner that the waste was actually yarn of sub-standard quality had no basis. Even if the waste was capable of being used for spinning, it did not cease to quantify for the term waste . 10. Reliance has been placed by the ld. Commissioner on the test report to hold that the goods were not waste. We have carefully perused the test reports which were reproduced in the show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le fibre plus Nylon staple fibre) should be considered as staple fibre yarn. - Central Board of Revenue Letter No. 12/1/57-CX 3, dated 2-4-1957. 12. These last two reports, in fact indirectly show that the goods were waste and not staple fibre. 13. Much has been made of the terminology used by the appellants in describing their goods. The ld. Commissioner in the impugned order has observed that waste should normally have no fixed denierage or length. He, further, held that the very specifications in the delivery challan would establish that the goods were not waste. The terms used by the appellants were O.L./M.L. which as have been translated by the Department would mean original or ordinary/multiple length. The ld. Advocate stated that O.L. meant over length and M.L. meant mixed length. Ld. Advocate also stated that denierage was a measurement showing the weight in grams of yarn of length of 9,000 mtrs. He submitted that it was the trade practice to show the denierage of the waste which was equivalent to denierage of the yarn or fibre during the production of which the waste arose. We find that not much strength can be drawn for the Department s case from the mere fact that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
