M/S. L.M.L. LIMITED versus COLLECTOR OF CENTRAL EXCISE, KANPUR

M/S. L.M.L. LIMITED versus COLLECTOR OF CENTRAL EXCISE, KANPUR

Off-cuts used in manufacture of small parts of scooters, being of different shapes and sizes and no longer retaining their rectangular form, do not qualify as 'sheets' or 'waste and scrap' but are instead appropriately classified as 'shapes' under tariff item 7210.10. Duty payable is Rs. 365 per ton under that entry.

Parties
Appellant: L.M.L. Limited; Respondent: Collector of Central Excise, Kanpur
Jurisdiction
India
Judgment Date
21 August 1997
Procedural Posture
Civil Appeal / Supreme Court (appeal From Order of Customs, Excise and Gold (control) Appellate Tribunal)
Outcome
Appeal allowed
Legal Topics
Tariff Classification, Central Excise, MODVAT Credit
Taxation Excise Law Tariff Classification Central Excise MODVAT Credit

Case Brief

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Parties

L.M.L. Limited

Appellant

Collector of Central Excise, Kanpur

Respondent

Procedural Posture

Civil Appeal / Supreme Court (appeal From Order of Customs, Excise and Gold (control) Appellate Tribunal)

Legal Issues

  1. 1 Whether off-cuts of steel sheets used in manufacture of small parts of scooters are classifiable as 'sheets', 'waste and scrap', or 'shapes' under Chapter 72 of the Central Excises and Salt Act, 1944.

Ratio Decidendi

Off-cuts used in manufacture of small parts of scooters, being of different shapes and sizes and no longer retaining their rectangular form, do not qualify as 'sheets' or 'waste and scrap' but are instead appropriately classified as 'shapes' under tariff item 7210.10. Duty payable is Rs. 365 per ton under that entry.

Court Disposition

Appeal allowed

Orders

  • Orders of Tribunal, Assistant Collector and Collector (Appeals) set aside.
  • Appellant entitled to clear off-cuts of steel sheets by paying duty under tariff entry 72.10 at Rs. 365 per ton.