TaxTMI 
TaxTMI 
2005 (5) TMI 70
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....nal (in short "CEGAT") dated 22nd September, 1999. 2.Briefly stated the facts are as follows :- The Respondents are manufacturers of tyres. In the process of manufacturing tyre they purchase stainless steel wires. These wires are then cut into sizes. In the process of cutting the wire some scrap arises. This scrap is sold by the Respondents admittedly as scrap of wire. 3.The Respondents then u....
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..... 5.Two show cause notices had been issued to the Respondents on 5th December, 1991 and 20th April, 1992. Thereafter by orders dated 18th November, 1992 and 19th November, 1992 the Assistant Collector dropped the proceedings on the footing that the Respondents had correctly classified these items under Tariff Item No. 4004. 6.The Commissioner of Central Excise exercising powers under Section 3....
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....able under Tariff Item No. 4004. CEGAT has so held without at all considering the composition of the products. CEGAT has so held only on the basis of Chapter Note 6 to Chapter 40 which reads as follows :- "For the purposes of Heading No. 40.04, the expression "waste, parings and scrap" means rubber waste, parings and scrap from the manufacture or working of rubber and rubber goods definitely not ....
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....l wire gets coated with rubber. Merely because it is coated with rubber does not mean that it loses its characteristic of stainless steel wire. The main item remains a stainless steel wire. When in the process of coating, some waste arises and that waste is sold, that waste would fall under Tariff Item No. 7204.90 by virtue of the fact that it is the waste predominantly of metal. Also this waste a....