TaxTMI 
TaxTMI 
1992 (2) TMI 215
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd the expression 'Other Vegetable Textile Fabrics' under Heading 5304.00 would not include such jute waste and thereby allowed the appeal. I find that the said order has not been reversed or annulled by any higher appellate authority. Under this circumstances, in the instant case, I hold the same view and allow the appeal in favour of the appellant. The order of the Superintendent is set aside". 2. In Appeal No. 1904/91-D, the assessee is aggrieved with the order-in-appeal passed by the Collector of Central Excise (Appeals), Calcutta which is as follows - "I have gone through the facts of the case, the grounds of appeal and the submission of the appellant during hearing. Previously, this issue was decided in favour of the appellant by the Collector (Appeals) but since it has been clarified by the Government of India under Board's letter F. No. 53/1/90-CX.I dated 11-9-1990 that since 'Jute Caddies' are 'agglomerated mass essentially composed of Jute fibres' and as jute fibres has been exempted under Notification No. 52/87 dated 1-3-1987 if used for captive consumption therefore, Jute caddies which are short jute fibres, classifiable under sub-heading 5304.00 and they are also....
X X X X Extracts X X X X
X X X X Extracts X X X X
....stics of original and natural jute fibres and that they cannot be treated as manufactured product. They further contended that Headings 5302 and 5304 read together, would clearly show that the jute fibre does not come under any of the headings in Chapter 53 of the Tariff as there is no specific mention of'Jute fibre' in Chapter 53 of the Tariff and that they also relied on the decision of the Tribunal in the case of Mi/s. Punjab Industries v. Collector of Central Excise, Meerut -1989 (43) E.L.T. 314 (Tri.)] = 1988 (16) E.C.R. 63 in which it had been held that the ....... process does not amount to manufacture, if the commodity retained its original characteristics and unless there is manufacture, no question of excise duty was leviable. 5. The Assistant Collector after giving an opportunity of hearing, has held that the jute caddies are basically processed jute fibre and are different from raw jute. He has held as regards the assessee's contention pertaining to classification that the assessee's ground is not tenable because of the fact that even though the subject product can be called a jute fibre, waste of short length collected at different stages of manufacturing process is....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Collector has further held that jute caddies are fibres which have undergone treatment indicating their use as textile materials and arise during crushing, carding, combing, spinning or weaving of jute yarn and fibres. He has further stated that jute caddies are generally used by buyers for padding, filling, stuffing, felt making and manufacturing of decorative items. He has further held that jute caddies have a distinct use and are marketable and hence, they are different from raw jute as they have a separate identity. 9. The assessee being aggrieved by this order, has filed an appeal before the Collector (Appeals) who has passed the order noted above. 10. We have heard Shri A.K. Sil learned advocate for the appellant-assessee and Shri J.N. Nair, learned DR for the Revenue. Shri Nair, DR submitted that the goods - jute caddies are marketed and sold to outside parties by the assessee. The buyers are manufacturers of card board, packing etc. As the product is marketable and useful and not disposed of as rejects or scraps, hence, they are excisable commodities. He has also relied on the Board Circular No. 21/90 dated 11-9-90 by which the Board has clarified that caddies are sh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ber Ltd. v. Union of India [1987 (29) E.L.T. 502] and also relied on the ruling rendered in the case of Plastic Packaging Ltd. v. Collector of Customs [1991 (51) E.L.T. 271]. He contended that the legislature had in its wisdom incorporated a sub-heading for 'waste' in T.I. 5302.10. There is also a sub-heading for residuary 'Other' under T.I. 5302.90. He contended that if the item was not to be classified as waste, then it should be brought under T.I. 5302.90 .as 'other'. He also referred to the definition of waste as given in Section XI, 13-C of the Central Excise Tariff Act, 1985 which reads as follows - ""Waste" of sub-heading Nos. 5302.10 and 5607.11 shall mean - (i) A tangled mass of short lengths not capable of being disentangled without considerable labour; or (ii) Short lengths not exceeding 1.8 metres, even if they are not in the form of a tangled mass and not capable of being used in the manufacture of rope or cord". He contended that the product does not come within the sub-heading 5304 as it is not a 'Other physical textile fabrics and yarn thereof, paper yarn". He contended that by implication, this sub-heading 5304 is excluded. He further contended that the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....very change of an article is the result of treatment, labour and manipulation. But something more is necessary and there must be transformation; a new and different article must emerge having a distinctive name, character or use" 15. It is helpful to consider also in this connection the ordinary meaning of the word "goods". For, by the very words of the Central Excises and Salt Act, 1944 excise duty is leviable on goods. The Act itself does not define goods but define excisable goods as meaning goods specified in the First Schedule as being subject to a duty of excise and includes salt. On the meaning of the word goods, an interesting passage is quoted in the Words and Phrases, Permanent Edition, Vol. 18 from a judgment of a New York Court thus - "The first exposition I have found of the word goods is in Bailey's large Dictionary of 1732, which defines it simply 'merchandise' and by Johnson, who followed as the next lexicographer it is defined to be movable in a house; personal or immovable estates; wares; freight; merhandise." 16. Webster defines the word goods, thus - "Goods noun, plural; (1) movables; household furniture (2) personal or movable estate, as horses, cat....