1996 (9) TMI 282 - AT - Central Excise

Summary

Issues involved: Determination of whether waste products are excisable goods under Central Excise Law and eligibility for duty exemption under Notification No. 55/75.

Summary:
The case involved the manufacturing of Di Calcium phosphate Animal Feed Grade, resulting in the generation of chemical waste products. The respondents initially paid duty on clearing the waste but later filed a refund claim, contending that the goods were not excisable. The Assistant Collector rejected the claim, deeming the waste products as marketable goods under Central Excise Law. However, the Collector (Appeals) disagreed, citing precedents that waste products may not attract duty.

The Revenue appealed this decision, arguing that the waste had a regular market and thus qualified as "goods" under the legislation. Various judgments were referenced to support this position, emphasizing the marketability and usage of the waste products.

The respondents, though absent, argued in written submissions that even if the waste had a market, it did not meet the definition of "goods" under Central Excise Law. They cited relevant judgments, including one by the Apex Court, to support their stance.

Upon careful consideration, the Tribunal analyzed the precedents and held that waste products not intended for manufacture are not considered goods and do not attract duty. However, if a by-product is regularly produced and sold, it may be deemed a subsidiary product with commercial value. In this case, the waste products were cleared and sold frequently, indicating they were known in the market as distinct entities, contrary to being mere waste.

Consequently, the Tribunal allowed the appeal, setting aside the Collector's orders and reinstating the Assistant Collector's decision.