2018 (3) TMI 1227 - AT - Central Excise

Levy of tax - waste packing material (floor sweeping) - Held that - issue has came up before the Tribunal in the case of Harinagar Sugar Mills Ltd. vs. CCE 2014 (5) TMI 494 - CESTAT MUMBAI , where it was held that it cannot be said the appellants are manufacturing the said floor sweepings and appellants are not required to pay duty on these floor sweeping being waste - The floor sweeping is incidental and appellant never manufacture it. So there is no question of levy of tax - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Appeal against excise duty on waste packing material
- Manufacturing of power cables
- Interpretation of floor sweeping as manufacturing activity
- Applicability of tax on floor sweeping

Analysis:
The appellant, engaged in manufacturing power cables, appealed against an order demanding excise duty on waste packing material created during the manufacturing process. The issue revolved around whether the waste material, specifically floor sweeping, should be considered as a product manufactured by the appellant. The Tribunal referenced a previous case involving Harinagar Sugar Mills Ltd. vs. CCE, where it was established that even though the floor sweeping had some value, it did not constitute a product manufactured by the appellant. The Tribunal followed the ratio laid down in the case of CCE vs. Geltec Ltd. to determine that the floor sweeping was merely incidental and not a product intentionally manufactured by the appellant. Consequently, the Tribunal concluded that there was no basis for the levy of tax on the waste packing material. Thus, the impugned order demanding excise duty was set aside, and the appeal was allowed.