2009 (5) TMI 723 - AT - Central Excise

Summary

Issues:
Excisability of spent Methanol cleared by the applicants.

Analysis:

Issue: Excisability of spent Methanol
The issue in this case revolves around the excisability of the spent Methanol cleared by the applicants. The applicants, engaged in manufacturing bulk drugs and intermediaries, used methanol as a solvent. The contention was that as methanol became impure over time during the manufacturing process, they cleared the spent methanol. The Revenue argued that duty was payable on the spent methanol. The learned Advocate for the applicants relied on several Tribunal decisions favoring the assessee in similar cases. The Tribunal noted that spent methanol is a waste product and clarified that the manufactured product was not spent methanol but rather distilled and purified. The Tribunal found no manufacturing process involved as the input itself was methanol. Considering the arguments and precedents, the Tribunal ruled in favor of the applicants, granting a full waiver of the pre-deposit of the dues demanded in the impugned order. The Tribunal also directed that no coercive measures should be taken by the Revenue until the appeal's disposal, with the stay order continuing even after 180 days.

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