TMI Blog2005 (5) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... eristic of stainless steel wire. The main item remains a stainless steel wire. When in the process of coating, some waste arises and that waste is sold, that waste would fall under Tariff Item No. 7204.90 by virtue of the fact that it is the waste predominantly of metal. Also this waste arises whilst mechanically working on metal and rubberising it. Thus, Note 6 of Section XV would make this a waste and scrap of metal. Chapter Note 6 to Chapter 40 would have no application at all. Chapter Note 6 to Chapter 40 specifically provides that the waste and scrap must be rubber waste or scrap. The Tribunal has missed the crucial words "rubber waste ...... and scrap". Waste arising from the process of rubberising a stainless steel wire is not a rubb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re removed from defective tyres are to be classified under Tariff Item No. 4004 or 7204.90. 5.Two show cause notices had been issued to the Respondents on 5th December, 1991 and 20th April, 1992. Thereafter by orders dated 18th November, 1992 and 19th November, 1992 the Assistant Collector dropped the proceedings on the footing that the Respondents had correctly classified these items under Tariff Item No. 4004. 6.The Commissioner of Central Excise exercising powers under Section 35E(2) of the Central Excises and Salt Act, 1944 by his order dated 12th March, 1993 directed the filing of an Appeal. In his opinion these two products were classifiable under Tariff Item No. 7204.90. 7.Thus, an Appeal was filed before the Collector (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be seen that the product to start with is admittedly a stainless steel wire. In fact at the initial stage when it is cut and waste arises that waste is sold as scrap of stainless steel wire. Thereafter all that happens is that the stainless steel wire gets coated with rubber. Merely because it is coated with rubber does not mean that it loses its characteristic of stainless steel wire. The main item remains a stainless steel wire. When in the process of coating, some waste arises and that waste is sold, that waste would fall under Tariff Item No. 7204.90 by virtue of the fact that it is the waste predominantly of metal. Also this waste arises whilst mechanically working on metal and rubberising it. Thus, Note 6 of Section XV would make ..... X X X X Extracts X X X X X X X X Extracts X X X X
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