TaxTMI 
TaxTMI 
2016 (8) TMI 433
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....). 2. This is the second round of litigation. The Petitioner had earlier filed W. P. (C) No. 8160 of 2014 in this Court when its representation dated 11th August 2014 made to the Government of India protesting against the imposition of 12% CVD was not responded to. This Court disposed of the said writ petition by the following order on 2nd December 2014: "Mr Shukla appearing on behalf of respondent Nos. I. and 2 states that he has taken instructions to the effect that the representation dated 11.08.2014 filed by the petitioner will be considered and disposed of within one month. The learned counsel for the petitioner requests that while considering the representation, the decisions of the Supreme Court in Hvderabad Industries Ltd. vs. Union of India: 1999 (108)E.L.T. 321 (SC) and Commissioner of Central Excise and Customs, Bhubneshwar-I vs. Tata Iron and Steel Co. Ltd:2003 (154) E.L.T. 343 (SC) be also considered. We direct accordingly. In view of the statement made by the learned counsel for the respondent Nos. 1 and 2, no further directions are necessary in this writ petition. The same stands disposed of." 3. It is pursuant to the above order that....
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....India 1987 (29) ELT 502 (Del). He submitted that it has been categorically held in the said judgement by the Court that the cutting and punching of tyres that have been found unfit for consumption or marketing, to turn them into waste/scrap does not result in manufacture of waste material and, therefore, no duty can be levied thereon. 6. Mr Lakshmikumaran also placed reliance on the decision of the Customs, Excise and Gold Control Appellate Tribunal ("CEGAT") in Gujarat Reclaim & Rubber Products Ltd. v. Collector of Central Excise & Customs, Bombay 1983 (14) ELT 2401 (Tri - Delhi), in which it was held that the crushing of waste rubber into powder does not amount to manufacture. It was held that "a simple act of crushing and powdering like this one should not in our opinion be taken to be synonymous with creation of a new product." It was found by the CEGAT that "the product keeps its original character, molecular structure, chemical identity etc." The appeal against the said decision of the CEGAT was dismissed by the Supreme Court on 20th November 1989 in Civil Appeal No. 4194 of 1984 inter alia observing that "the Tribunal has not only given a finding that the powder is secure....
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.... "tyre scrap cut into two or three pieces". For the purpose of the said question the further question that requires to be answered is whether such goods, if produced in India could be said to be "manufacture"? In other words if old and used tyres in India are subject to the processes of cutting into two or three pieces and the cut pieces of tyres are sold in the market could it be said that there has been a manufacture of cut pieces of tyre scrap from the old tyres? 11. The facts in Modi Rubber Limited v. Union of India (supra) were that Modi Rubber Limited ("MRL") was carrying on the business of manufacture and sale of tyres and other rubber products. The said goods were being manufactured at its factory at Modipuram. In the process of such manufacturing, a small quantity of rubber compound was rejected due to wrong mixing or overheating. MRL claimed that the rejected rubber compound was in the nature of waste. At various stages of the manufacture, some quantity of rubber cuttings emerged which were also treated as waste. The substandard and defective goods were destroyed by cutting and punching. MRL's contention was that since there was no manufacture of the waste no excis....
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.... subject to the prior permission and fulfilment of such conditions as may be imposed by the Collector. For claiming remission of duty on such goods, a procedure has been laid down in Chapter 42 of the Central Excise Law Guide. Separate procedure has been prescribed under other statutory provisions for the destruction or disposal of waste, refusal or unsaleable material arising out of goods brought under Rule 56A or under Chapter X or under Rule 173-K, 137-N and 173-P. The list showing the excisable commodities and the manner and method of their Destruction has been specified in para 42.07. In case of Tariff Item No. 16 i.e. Tyres it is "by cutting and punching". If under the Rules, the remission is granted on the goods found unfit for consumption or for marketing on destruction in the manner and method prescribed then there is no warrant to levy duty of excise on the tyres, tubes and flaps which are found unfit for consumption or for marketing by the petitioner himself. After such goods have come into existence during the process of manufacture, then the only method employed by the petitioner himself is of destruction "by cutting and punching" to turn it into waste/scrap. There is ....