2007 (1) TMI 312 - AT - Central Excise

Summary

Issues: Classification of Diethyl Sulphate Sludge (DES Sludge) and levy of central excise duty.

In this case, the department appealed against the Commissioner (Appeals) order dated 19-12-2000 classifying Diethyl Sulphate Sludge (DES Sludge) under Chapter 28.07 and subjecting it to central excise duty. The Commissioner (Appeals) found that DES Sludge was not a by-product arising out of manufacture and therefore beyond the purview of "manufacture," making the levy of duty unwarranted. The department argued that spent sulphuric acid, considered a by-product, should be dutiable based on precedent. However, the respondent contended that they were already paying duty on spent sulphuric acid and that DES Sludge, being non-marketable waste, should not be subject to duty. The Tribunal upheld the Commissioner (Appeals) findings, stating that there were no valid grounds to challenge the classification of DES Sludge as not a by-product and not marketable, thus rejecting the department's appeal. The judgment was pronounced on 24-1-2007.