TaxTMI 
TaxTMI 
TaxTMI 
1990 (5) TMI 139
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....S. Kalyanam, Member (J) (Oral)]. - This appeal is filed by the Collector of Central Excise, Madurai and is directed against the order of the Collector of Central Excise (Appeals), Madras dated 24-2-1989. The short question that arises for consideration in the appeal filed by the Department is whether MODVAT credit of duty taken on inputs used in the manufacture of cut tyres and tubes not permiss....
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....t of any treatment or any labour or any manipulation by the petitioner Company whereby a new and different article emerges. At various stages of the manufacture of tyres, tubes, flaps and other rubber products which are admittedly goods manufactured, rubber cuttings and waste is generated and comes into existence. The process whether essential or incidental or ancillary to fall within one ambit of....
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.... anew and different article. No one has brought into existence a new substance having distinctive name, character or use". 5. This Bench of the Tribunal also in the aforesaid Ruling has held as under: " A defective tyre and tube emerges because of some defect left in the product during the process of manufacture and any defective product which is accepted by the authorities as not marketable end....
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.... paid on the inputs going into the manufacture of such cut tyres and cut tubes in course of manufacture of tyres and tubes would be available under Rule 57D (1) or not. The matter has been examined. It is clarified that as cut tyres and tubes are not definitely usable as such and are disposed of as waste and scrap it would be appropriately classifiable under Heading 40.04 as mentioned in Note 6 o....