1988 (6) TMI 121

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.... heard together. 2. The case for the appellants is that in connection with their work of construction of systems of water cooling towers they obtain logs of timber which are converted by them into their scantlings. Similarly duty paid plywood is also obtained by them and converted into plywood scan things. These scantlings are then treated with preservatives to prevent damage by fungus, etc. Sometimes holes are drilled in the chir scantlings for purpose of fitments. In the course of conversion of logs into scantlings certain waste products arise such as (i) wood waste and (ii) saw dust. Under order dated 5-1-1981 the Assistant Collector held that the chir scantlings, plywood scantlings, wood waste as well as saw dust are excisable and fa....

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....he scantlings are subsequently chemically treated to make fungus and termite resistant they become a new product on which excise duty would be leviable. He further submits that this would be more so, when, in respect of chir scantlings, holes are drilled for fitment. Shri Narasimhan questions the correctness of this claim and in that connection relies on the decision of the Supreme Court in the case of Deputy Commissioner of Sales Tax v. Shiphy International (1988 Vol.34 E.L.T. 416) and also the decision of this Tribunal in the case of M/s. Aruna Industries and others (1986 Vol.8 ECR 166). 5. Shri Chakraborty referred us to the decision of the Supreme Court in the Empire Industries case (1985 Vol.20 E.L.T.129) in this connection. The Sup....

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....ir and ply-wood) they were not excisable products. 7. So far as saw dust and wood waste are concerned the Tribunal had to consider similar products in the case of M/s. Singareni Collieries Co. Ltd. [1988 (34) E.L.T. 671]. The Tribunal took note of its earlier decision in the case of M/s. Sangvi Enterprises (1984 Vol. 16 E.L.T. 317) whereunder saw dust was held excisable though not sawn timber. The Tribunal further took note of the decision of the Delhi High Court in the case of M/s. Modi Rubber Ltd. [1987 (29) E.L.T. 502] and following the said decision held that saw dust as well as wood waste (called sawn paratty in that case) were not excisable as they were waste products arising in the course of manufacture of sawn timber. Following t....