2007 (10) TMI 48 - AT - Central Excise

Calcium Chloride Sludge emerging as waste in manufacturing of tri-chloro ethylene Sludges generated in the course of manufacture of chemical products are only wastes which is not excisable Impugned Sludges are not relatable to pure calcium chloride to impose duty- Appeal of Revenue rejected

Summary

Issues:
1. Classification of calcium chloride sludge under the Central Excise Tariff Act.
2. Whether calcium chloride sludge is excisable or considered industrial waste.
3. Challenge to the decision of the lower appellate authority by the Revenue.
4. Dispute regarding the duty demanded by the Revenue on the sludge disposed of by the respondents.

Analysis:

1. The appeal by the Department revolves around the classification of calcium chloride sludge under SH 2827.00 of the Schedule to the Central Excise Tariff Act. The original authority demanded duty from the respondents based on this classification. However, the Commissioner (Appeals) allowed the appeal of the assessees, stating that calcium chloride sludge was considered industrial waste and not excisable. The Revenue challenged this decision, arguing that the cases cited by the appellate authority were factually distinguishable.

2. The Tribunal noted that the crucial finding of the lower appellate authority, stating that calcium chloride sludge was a waste product, was not disputed. The Revenue contended that the sludge should be excisable based on the grounds of pure calcium chloride. However, the Tribunal disagreed, emphasizing that calcium chloride sludge is distinct from pure calcium chloride. The respondents had rejected the sludge, indicating its non-recoverability and lack of value. The Tribunal highlighted the absence of any basis for the duty amount demanded by the Revenue and cited judicial authorities supporting the non-excisability of sludges generated in the manufacturing process of chemical products.

3. The Tribunal upheld the decision of the learned Commissioner (Appeals) and dismissed the appeal by the Revenue. The order emphasized the consistent stance of judicial authorities regarding sludges as waste products not subject to excise duty. Additionally, the Tribunal noted that even calcium carbide sludge generated in the manufacturing process of tri-chloro ethylene did not attract duty, further supporting the non-excisability of such by-products.

In conclusion, the Tribunal affirmed the classification of calcium chloride sludge as industrial waste, thereby rejecting the Revenue's appeal and sustaining the decision of the lower appellate authority.