Manufacturing waste and scrap rubber were not treated as goods, so they were not dutiable under the old tariff.

Waste products arising during manufacture, including scrap rubber, rubber components, flaps, tyres and tubes, were treated as not amounting to goods under the old tariff. The prevailing view, reflected in Delhi High Court and Tribunal decisions later approved by the Supreme Court, was that manufacturing waste of this kind was not liable to duty during the relevant period. The operative position was therefore that such scrap and similar residual materials were not dutiable under the old tariff when generated in the course of manufacture.

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Issues: Whether waste products such as scrap rubber, rubber components, flap, tyres and tubes arising during manufacture were liable to duty under the old tariff.

Analysis: The prevailing view accepted that waste arising in the course of manufacture did not amount to goods. The Delhi High Court had held that such scrap could not be considered goods, and the Tribunal had taken the same view in subsequent decisions, with the later Tribunal ruling having received approval from the Supreme Court.

Conclusion: The waste products were held not dutiable during the relevant period under the old tariff.

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