WALUJ BEVERAGES Vs. CCE

JUDGEMENT

(1.) This is an appeal filed by the assessee against the order in appeal No. A/42/97 dated 6.3.1997 passed by the Commissioner (Appeals). The appellants are engaged in the manufacture of Aerated Waters and were using glass bottles for the packing of aerated water. During the course of transit/storage and manufacture, certain bottles were broken and these were being cleared as broken bottle scrap at various prices from time to time. Show cause notice was issued to the assessee demanding duty amounting to Rs. 16,576/ - in respect of the scrap cleared by them taking the view that broken bottles scrap was covered under Chapter Heading 70.01 as waste and scrap of glass. The appellants contended that the broken glass bottles are not manufactured product and therefore, are not excisable goods. It was also submitted that Chapter Heading 7001.10 does not cover waste/scrap of glass. The above contention was not accepted both by the adjudicating authority as well as the appellate authority. The demand for Rs. 16,576/ - was confirmed and a penalty of Rs. 15000/ - was imposed.

(2.) The learned counsel for the appellants while reiterating submission made before the authorities below placed reliance on a decision of this Tribunal in Charminar Bottling Co. (P) Ltd. v/s. CCE Hyderabad, 2001 (134) ELT 179 (Tri. -Del.) in support of its contention. So long as the appellant is not manufacturing glass bottles, the broken glasses cannot be considered as a product emerging for classification and duty liability under Excise law. We find that the appellants are fully justified in contending that when the appellants undertake filling aerated waters certain bottles get broken and it is not that they are manufacturing glass bottles. It cannot be treated that the broken glasses are excisable products. We are in full agreement with the view taken by the Tribunal in the above decision. We, therefore, set aside the impugned order and allow the appeal.