Scrap from tyre and tube manufacture held excisable under Tariff Item 68; appellate relief reversed.

Scrap arising in the manufacture of tyres and tubes, including scrap generated from scrapping fully manufactured tyres and tubes, was held liable to central excise duty under Tariff Item 68. The Tribunal accepted the department's view, set aside the Appellate Collector's order, and restored the Assistant Collector's assessment. The operative principle is that such scrap, whether produced during manufacture or from dismantling completed tyres and tubes, falls within the relevant excisable entry.

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Issues: Whether scrap of tyres and tubes arising during manufacture, and scrap generated by scrapping fully manufactured but non-marketable tyres and tubes, was liable to duty under Tariff Item 68 of the Central Excise Tariff.

Analysis: Scrap arising in the course of manufacture was already held liable to duty under Tariff Item 68 in earlier Tribunal authority, and there was no reason to take a different view. Scrap generated by scrapping finished tyres and tubes that were found not marketable stood on the same footing, because the duty liability attached to scrap arising from manufacture was equally applicable to scrap arising from the dismantling or scrapping of completed goods.

Conclusion: The scrap in both categories was chargeable to duty under Tariff Item 68, and the assessee's challenge to duty liability failed.

Ratio Decidendi: Scrap arising from the manufacture of tyres and tubes, as well as scrap generated by scrapping fully manufactured non-marketable tyres and tubes, is liable to central excise duty under Tariff Item 68.

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