Crushed old rubber not new product-no Central Excise Duty. Appeal successful.

The Appellate Tribunal CEGAT, New Delhi held that powdering scrap tyres into crump rubber does not constitute manufacturing subject to Central Excise Duty. The Supreme Court upheld this decision, ruling that the powder resulting from crushing old rubber does not create a new product. Consequently, the appeal was successful, and the challenged order was overturned.

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The Appellate Tribunal CEGAT, New Delhi ruled that powdering scrap tyres into crump rubber does not amount to manufacturing attracting Central Excise Duty. The Tribunal's decision was supported by the Supreme Court, which dismissed the appeal stating that the powder formed by crushing old rubber is not a new product. The appeal was allowed, and the impugned order was set aside. (Citation: 1991 (9) TMI 267 - CEGAT, New Delhi)

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