G.A. Brahma Deva, Member (J)

1. This appeal is directed against the Order-in-appeal No. 476-CE/CHG/85 dated 16-9-1985 passed by the Collector (Appeals), Central Excise, New Delhi.

2. The issue involved in this case is whether recovery of Caprolactum amounts to manufacture and such caprolactum is excisable under Tariff Item No. 14-AA.

3. The facts of the case, in brief, relating to this issue are that the appellants are engaged in the manufacture of Nylon yarn falling under Tariff Item 18 by using duty paid indigenous or Imported virgin caprolactum as the principal raw material among various raw materials. During the course of manufacture of Nylon yarn, certain wastes arise. This waste contains depolymerised caprolactum. It appeared that the wastes are reacted with the help of steam and is allowed to melt. The melt is passed through the condensation/concentration Tank and fed in the water wash Tanks. The wash water collected from polymerisation/De-polymerisation is distilled and passed through the vessel for monomer and monomer goes back recycled with it. During this process caprolactum is recovered from the waste in vessel for Monomer and the monomer (Caprolactum) then goes back