2005 (12) TMI 123 - AT - Central Excise

Summary

Issues involved:
Classification of Waste Filter Cake as an excisable commodity under heading 3824.90

Detailed Analysis:

1. The main issue in the appeal was whether the "Waste Filter Cake" generated during the manufacturing process of Chemical Additives is an excisable commodity under heading 3824.90. The Commissioner (Appeals) had earlier held that the waste filter cake is not excisable as it is not a manufactured product but a waste material with negative commercial value.

2. The revenue contended that the reference to the earlier Tribunal's order was not justified since the issue was remanded and not decided. However, after hearing both sides, the Tribunal found that the Commissioner (Appeals) had considered all facts and evidence on record to arrive at the decision, thus rejecting the revenue's contention.

3. Regarding the merits of the case, it was noted that the waste filter cake emerged during the filtration process in the manufacture of chemical additives. The appellant argued that the waste was given to processors for removal of toxicity and oil/chemical additive absorbed by the filter aid.

4. The Commissioner's order, which favored the respondents, was based on various pieces of evidence, including the manufacturing process of waste filter cake, reports from IIT and UDCT, and relevant case laws like Markfed Vanaspati. The revenue did not challenge this order, leading to the issue being considered settled.

5. The Commissioner (Appeals) also referred to the Condensed Chemical Dictionary and the decision in the Markfed Vanaspati case to support the non-marketability of waste filter cake. The Tribunal agreed with the Commissioner's findings that waste filter cake is not a marketable commodity and is similar to other waste materials not considered excisable in previous cases.

6. Citing precedents like the South India Viscose Ltd. case, the Tribunal concluded that waste filter cake, being a waste material with no commercial value, cannot be classified as excisable. Therefore, the appeal filed by the revenue was rejected, affirming the decision that Waste Filter Cake is non-excisable.

In conclusion, the judgment upheld the decision that Waste Filter Cake is not excisable under the Central Excise Tariff Act, 1985, based on the evidence presented and legal precedents cited.