2005 (10) TMI 28 - HC - Central Excise

Held that escapement of gases during the process of filling in the cylinders ( medicinal & industrial grade) will be treated as waste within the meaning of Rule 57D of CE Rules no substantial question of law arise against tribunal decision

Summary

Issues: Interpretation of 'waste, refuse, or by-product' under Rule 57D of Central Excise Rules, 1944; Authority of CESTAT to pass multiple orders on the same appeal.

In this judgment, the High Court of Gujarat at Ahmedabad considered an appeal by the revenue department regarding the interpretation of the terms 'waste, refuse, or by-product' under Rule 57D of the Central Excise Rules, 1944. The main issue was whether the loss of inputs due to evaporation during a manufacturing process could be considered as waste. The appellant argued that gases escaping during the filling of cylinders should not be classified as waste. However, both the Commissioner (Appeals) and the Tribunal held that the escaped gases were indeed in the nature of waste. The court noted that there was no dispute regarding the escapement of gases during the manufacturing process, and since the Tribunal's reasoning was sound, no substantial question of law arose, leading to the dismissal of the appeal.

Regarding the second issue raised by the appellant, it was questioned whether the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) could pass two orders on the same appeal under Section 35C of the Central Excise Act, 1944. The appellant had filed six separate appeals before the Tribunal, but the appellant-revenue preferred only one appeal. The court clarified that in this case, only the order in the First Appeal before the Tribunal (Appeal No. E/3643/01) was considered for the present appeal. Ultimately, the court dismissed the appeal, emphasizing the absence of any infirmity in the Tribunal's reasoning and the lack of a substantial legal question to be addressed.