Scrap from tyre manufacture held not excisable goods, so central excise duty could not be levied.

Scrap items arising in the manufacture of tyres, tubes and flaps were held not to be excisable goods for central excise purposes. The Tribunal followed its earlier decision on identical scrap and preferred the Delhi High Court view that such scrap did not constitute goods liable to duty. The contrary Madras High Court decision on bagasse was treated as less apposite on the facts. The impugned order was therefore set aside and consequential relief granted to the appellants.

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Issues: Whether scrap items arising in the manufacture of tyres, tubes and flaps were excisable goods liable to central excise duty.

Analysis: The Tribunal followed its earlier decision on identical scrap goods and preferred the Delhi High Court view that such scrap was not goods for the purpose of levy of excise duty. The contrary Madras High Court decision concerning bagasse was treated as less apposite on the facts.

Conclusion: The scrap items were not excisable goods and were not liable to central excise duty; the impugned order was set aside with consequential relief to the appellants.

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