2006 (10) TMI 298 - AT - Central Excise

Summary

Issues Involved:
The judgment deals with the issue of duty confirmation, fine, and penalty in relation to the clearance of spent solvents like Methanol, Ethyl Acetate, Acetone, Benzene, Tolune, IPA Xylene, EDC, which were initially suffered duty but later became industrial waste. The key issue is whether these solvents can be classified under Chapter 29 due to their purity level.

Analysis:
The Revenue appealed against the Order-in Appeal No. 144/2003-C.E., where the Commissioner accepted the assessee's argument based on various Tribunal judgments that the solvents in question cannot be confirmed for duty, fine, and penalty as they have become industrial waste after initial use. The Commissioner relied on judgments like Hindustan Lever Limited v. CCE and Markfed Vanaspati & Allied Industries v. CCE, which have been affirmed by the Supreme Court.

The Counsel referred to the Larger Bench judgment in Markfed Vanaspati & Allied Industries, which held that spent earth is not excisable. This decision was upheld by the Supreme Court. The Counsel also cited other Tribunal judgments and Supreme Court decisions supporting the non-taxability of similar products like spent solvents.

Upon careful consideration, the Tribunal found that the solvents in question did not meet the purity requirements for classification under Chapter 29 due to repeated use, as determined by the Commissioner. The Tribunal upheld the Commissioner's decision based on previous judgments and dismissed the appeal, stating that the demands were rightly set aside.

Conclusion:
The Tribunal concluded that the Commissioner's analysis and decision were just and proper, in line with previous Tribunal and Supreme Court judgments. The judgment's ratio was applied in a similar case before, confirming its applicability to the present situation. Therefore, the appeal was rejected as lacking merit.