UNIVERSAL CABLES LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS is a reference under Section 35g of the Central Excises and Salt Act, 1944 (for short the Act of 1944) by the Customs, Excise and Gold (Control) Appellate Tribunal referring the following question of law for opinion of this Court:

(2.) BRIEF facts giving rise to this reference are that the applicant Company is a manufacturer of insulated wires and cables of various sizes and specifications. It added a new item namely copper winding wire in its range of products. The Company did not have enough insulation capacity of bare copper wires to meet the demands of its customers. Therefore, it was drawing copper wires from duty paid copper rods in the factory and thereafter wanted to send the copper wires so drawn for further processing i. e. insulation with PVC compound to another factory. The company therefore sought permission for being allowed the facility under Rule 56b for movement of the bare copper wire so drawn without payment of duty to the other factory for insulation and then being brought back to their own factory for further processes.

(3.) THE Collector of Central Excise by impugned order, after considering the Company's detailed arguments in its letter dated 27-8-1988 and after seeing the samples of copper wire and of winding wire, declined to give permission under Rule 56b of the Rules of 1944. The reasons given by the Collector for declining to grant permission were as follows: