TaxTMI 
TaxTMI 
2025 (9) TMI 1085
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....the Central Excise Tariff Act, 1985. They procure PVC insulated copper wires and during the manufacturing process, waste & scrap of PVC copper wires is generated which they clear without payment of Central Excise Duty. The appellants were issued four show cause notices dated 05.03.2015, 03.12.2015, 01.05.2017 & 08.11.2017 covering the period from April, 2010 to June 2017 asking them to pay appropriate Central Excise Duty total Rs. 19,94,608/- under Section 11A of the Central Excise Act, 1944 along with interest under Section 11AA and penalty under Section 11AC of the Central Excise Act, 1944 read with Rule 25 of the Central Excise Rules, 2002. 1.1 The issue was decided by the Adjudicating Authority who as per the following details, confi....
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....g grounds:- (a) The Appellate Authority though agreed with the decision of Hon'ble Supreme Court in the case of Finolex Cable Ltd vs. commissioner of Central Excise, Pune-II reported in 2002 (146) ELT A100 but he tried to get away by saying that the said case pertains to Jelly Filled Telecommunication Wire. In this case, only end cuttings of PVC Copper Wires are left out during which does not amount to manufacture and therefore, Excise Duty is not leviable on said goods. (b) He has taken note of the decision of the Larger Bench of Hon'ble CESTAT in the case of Hindalco Industries Limited Vs. CCE Belapur MumbaiIII reported at 2014 (308) ELT 472 (Tri-LB) and stated that the following ground should be satisfied for excisable ....
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....ellant's case. Therefore, end cutting in their case are not classifiable under Chapter heading 7404. Since, there is no specific entry in the Central Excise Tariff Act, therefore, it is out of perview of Section 3 of the Central Excise Act, 1944. (g) Inserting explanation under Section 2(d) of the Central Excise Act, 1944 in 2008 does not impact their case. They rely on the decision in the case of Hindalco Industris Ltd Vs. Unition of India reported in 2014-TIOL2266-HC-MUM-CX. They cited various other case laws to emphasize on the process of manufacture and pleaded that the product in their case does not amount to manufacture and hence, not liable to excise duty. (h) Hon'ble Supreme Court in the case of Commissioner of Cen....
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....6) ELT 177 (S.C) • UNION OF INDIA Vs. RAJASTHAN SPINNING & WEAVING MILLS2009 (238) ELT 3 (S.C) (k) In view of the above, they prayed to set aside the impugned order and grant them the relief. 3. During hearing, learned Advocate emphasized their grounds taken in the appeals. He mentioned that they import/locally procure copper wires/PVC wires to manufacture wire harness. The issue of non payment of excise duty on such waste and scrap( i.e. end cuttings of PVC wire) was pointed out by Audit officers. After enquiry, show cause notices have been issued to the appellant. An identical issue has been decided by the Hon'ble Supreme Court in the case of CMI Ltd Vs. CCE Noida 2003 (152) ELT A103 by upholding the decision of t....
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....icals Pvt. Ltd. Vs. UOI -1992 (61) ELT 413 (Guj. HC) • Unique Resin Industries Vs. CCE-1995 (75) ELT 861 (T) For penalty, he argued that there is no positive action on the part of the appellant nor have they suppressed any facts from the department, therefore penalty is also not imposable on them. 4. Learned AR on the other hand, drawn the attention of the bench on various paras of the OIO to press that entry 7404 covering various types of copper wire scrap also covers various scraps of PVC insulated wires as "ISRI Code word DRUID" covered under CTH 74040012. He also highlighted that such scrap is sold in the price range of Rs. 240 to 260 per Kgs to different buyers on regular basis. This waste is also known by separate i....
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.... We also find that Mumbai Tribunal in the case of the Appellant itself vide Final order No. A/87446/2024 dated 04.12.2024 has decided the very same issue i.e. dutiability of scrap of copper/PVC wire for the period August 2009 to May 2014. The relevant para 4 and 5 of the said order is reproduced below:- "4. We find that the generation of waste and scrap of PVC insulated wires/copper wires are not arising out of any manufacturing process and those were simply the end cuttings of the wires procured by the respondents for the manufacture the final products. Since generation of waste and scrap cannot be considered as arising out of any manufacturing process, such activity undertaken by the respondent, in our considered view, would not ....