Waste and scrap of printed circuit boards is not excisable absent a specific tariff entry, despite metal content.

Waste and scrap arising from the manufacture of printed circuit boards was held not excisable where the Central Excise Tariff contained no specific entry for such scrap. Classification by predominance of glass, copper or other constituent material was rejected because duty cannot be levied merely on the basis of metal content in the absence of a tariff provision covering the relevant waste and scrap. The Tribunal followed its earlier view on waste and scrap of wires and cables and set aside the demand in favour of the assessee.

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Issues: Whether waste and scrap arising during the manufacture of printed circuit boards is excisable and classifiable under the Central Excise Tariff on the basis of its metal content despite the absence of a specific tariff entry.

Analysis: The waste and scrap arose from the manufacture of printed circuit boards classifiable under Chapter 85 of the Central Excise Tariff. The tariff contained no specific entry for waste and scrap of printed circuit boards. The attempt to classify the scrap by predominance of glass, copper, or other constituent material was rejected in light of the settled principle that where the tariff does not specifically provide for the relevant waste and scrap, duty cannot be imposed merely on the basis of constituent content. Reliance was placed on the earlier Tribunal view concerning waste and scrap of wires and cables, which had held that in the absence of a specific entry such scrap was not excisable goods.

Conclusion: Waste and scrap of printed circuit board was held not excisable and not classifiable for duty on the basis of metal content; the demand was set aside in favour of the assessee.

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