2007 (10) TMI 475 - AT - Central Excise

Summary

Issues involved: Eligibility for exemption u/s Notification 89/95-C.E. and 88/88 C.E. for Spent Sulphuric Acid in the manufacture of Acid Slurry.

Eligibility for exemption u/s Notification 89/95-C.E.: The issue was whether the appellants are entitled to the benefit of exemption under Notification 89/95-C.E. for Spent Sulphuric Acid arising during the manufacture of Acid Slurry. The appellants claimed that the Spent Acid is waste and thus qualifies for exemption under this notification, which exempts scrap arising in the course of manufacturing goods under a specific sub-heading. However, the tribunal found that the Spent Acid cannot be considered as goods consumed in the manufacture of detergent cake and detergent powder, and the requirement of captive consumption within the factory or in any other factory of the same manufacturer was not met. Therefore, the benefit under this notification was deemed unavailable, and the appeals were rejected.

Eligibility for exemption u/s Notification 88/88 C.E.: The appellants also sought the benefit of exemption under Notification 88/88 C.E. on the grounds that the Spent Acid is used further in the manufacture of detergent cake and detergent powder. However, the tribunal concluded that the Spent Acid does not qualify as goods consumed in the manufacture of these products, and since the appellants had cleared the Spent Acid from their factory, the requirement of captive consumption as specified in the notification was not fulfilled. Consequently, the tribunal upheld the impugned order and rejected the appeals based on these reasons.