2002 (11) TMI 142 - AT - Central Excise

Summary

Issues: Revenue appeal against setting aside duty and penalty on waste oil; Contention regarding levy of Central Excise duty on waste oil under specific tariff heading.

In the judgment, the Revenue appealed against the Order-in-Appeal that set aside the duty demand and penalty on waste oil, contending that the waste oil should be subject to Central Excise duty under a specific tariff heading. The Commissioner (Appeals) had ruled in favor of the appellant, stating that waste oil, like shot blast dust, is a mixture of various oils and should not be classified for duty. The Commissioner also referenced a previous Tribunal decision regarding spent earth not being considered a manufacture or by-product after use. The Revenue argued that the waste oil, cleared after using lubricating oils and other goods, should be subject to duty under Rule 57S(2)(c) as waste and scrap. However, the Tribunal noted that the Central Excise Tariff Act does not define waste oil under Heading 27, and there is no specific chapter note or heading for it. The Tribunal highlighted that specific waste materials like stainless steel, aluminum, and copper have dedicated tariff headings for waste and scrap, but waste oil does not. Referring to previous case law, including the Markfed Vanaspati case, the Tribunal concurred with the Commissioner's decision that waste oil is not leviable for duty under the current tariff structure. Consequently, the Tribunal rejected the Revenue's appeal, upholding the decision to set aside duty and penalty on waste oil.