2018 (5) TMI 1358 - HC - Central Excise

Dutiability - Spent Sulphuric Acid being generated as a by-product during the manufacture of Acid Slurry - N/N. 89 of 1995 dated 18.05.1995 - area based exemption - maintainability of appeal - Held that - the question, which may arise, is a question which relates to the entitlement of the respondent under N/N. 89 of 1995, which is issued under Section 5A and, therefore, is an exemption Notification - appeal dismissed as not maintainable.

Summary

Issues:
1. Interpretation of Notification No. 89 of 1995 regarding duty exemption for waste products.
2. Classification of Spent Sulphuric Acid as dutiable or exempted under the notification.
3. Entitlement of the respondent under the exemption notification.
4. Maintainability of the appeal based on previous judgments.

Analysis:

1. The Tribunal affirmed the Commissioner's order regarding the dutiability of Spent Sulphuric Acid generated during Acid Slurry manufacture under Notification No. 89 of 1995. The key issue was whether the waste product falls within the ambit of the exemption provided in the notification.

2. The Commissioner interpreted the notification, emphasizing that waste arising in the manufacture of exempted goods is exempt from excise duty. The explanation clarified that "exempted goods" refer to those with nil duty or full exemption. Since the conditions of the notification were met, the respondent was deemed eligible for the exemption.

3. The appellant raised a substantial question of law citing a previous Apex Court ruling on the treatment of by-products as manufactured goods. The question centered on whether Spent Sulphuric Acid, an unintended by-product, could still be considered waste under the notification. The court analyzed the entitlement of the respondent under the exemption notification in light of previous judgments.

4. The court dismissed the appeal as not maintainable, referencing a judgment in a related case. They concluded that the question raised by the appellant pertained to the respondent's entitlement under an exemption notification issued under Section 5A, making the appeal non-maintainable. The dismissal was without prejudice to the appellant's right to seek relief through the appropriate channels.