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2015 (1) TMI 377 - AT - Central ExciseLevy of duty on Waste Weak HCL acid - Marketability - Revenue contends that the waste weak HCL acid is lower in strength and would be covered under Heading 2806.10 and the appellant is liable to pay duty - Held that - Appellant took a definite stand before the lower authorities that the waste weak HCL acid is not marketable. The concentration of HCL is 10 - 15% and fetched a price of ₹ 25/-. But the concentrated HCL acid of 30 % to 33% marketed a price of minimum of ₹ 1,100/- to ₹ 1,200/- per MT. Revenue contended that waste weak HCL acid is processed by them. - merely the goods are sold in the market would not render goods marketable - Revenue has failed to place any material to show that the goods are sold and used in the further manufacture of any item - there is no material available to show that waste weak HCL acid is marketable and therefore it cannot be treated as an excisable commodity. Accordingly, the impugned orders are set aside - Decided in favour of assesse.
Issues Involved:
Interpretation of classification under Heading 2806.10 for waste weak HCL acid, marketability of waste weak HCL acid, applicability of excise duty on waste weak HCL acid. Analysis: Issue 1: Interpretation of classification under Heading 2806.10 for waste weak HCL acid The case involved the classification of waste weak HCL acid under Heading 2806.10 for the purpose of determining the liability to pay duty. The appellant argued that the waste weak HCL acid was not marketable due to its lower strength and specific processing method. The Revenue contended that the waste weak HCL acid should be classified under Heading 2806.10 and be subject to duty. The Tribunal examined the process of generating waste weak HCL acid, including the incineration process, to understand its nature and characteristics. Issue 2: Marketability of waste weak HCL acid The crucial point of contention was the marketability of waste weak HCL acid. The Revenue argued that the appellant had sold the waste weak HCL acid in the market, indicating its marketability. However, the Tribunal referred to previous judgments by the Hon'ble Supreme Court to establish the criteria for determining marketability. The Tribunal emphasized that mere sale of a product does not automatically make it marketable, as seen in cases involving by-products and waste materials. The Tribunal analyzed the commercial identity and demand for the waste weak HCL acid in the market to determine its marketability. Issue 3: Applicability of excise duty on waste weak HCL acid Based on the analysis of the process of generating waste weak HCL acid and the marketability aspect, the Tribunal concluded that there was insufficient evidence to establish that waste weak HCL acid was a marketable commodity. Therefore, the waste weak HCL acid could not be treated as an excisable commodity liable for duty. The Tribunal set aside the impugned orders and allowed the appeals, providing consequential relief to the appellants. In summary, the judgment delved into the classification, marketability, and excisability of waste weak HCL acid, highlighting the importance of commercial identity and demand in determining the liability to pay duty. The Tribunal's decision was based on the lack of evidence supporting the marketability of the waste weak HCL acid, leading to the allowance of the appeals.
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