COMMISSIONER OF CENTRAL EXCISE Vs. APOLLO TYRES LTD

JUDGEMENT

(1.) These Appeals are against the Judgment of the Customs, Excise and Gold (Control) appellate Tribunal (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 use the cut wire for the manufacture of rubberised bead wire. In the manufacture of such rubberised bead wire there is again some waste. That rubberised bead wire waste is also sold. The rubberised bead wire which is not waste is then used in the manufacture of tyre. However, when it is found that a tyre is defective that defective tyre is cut up to make it unusable. In the process of making a tyre unusable, the Respondents cut the edge of the tyre and remove the rubberised bead wiring which is then sold as scrap.