1995 (11) TMI 232 - AT - Central Excise

Summary

Issues:
- Whether Carbide Sludge is excisable goods under the Central Excises and Salt Act, 1944.

Detailed Analysis:

Issue: Whether Carbide Sludge is excisable goods under the Central Excises and Salt Act, 1944

The appeal before the Appellate Tribunal arose from a decision by the Collector of Central Excise (Appeals), Madras, which held that Carbide Sludge is not excisable goods. The Revenue contended that the respondents, who are manufacturers of Acetylene Gas, sold Calcium Carbide Sludge during the period from April 1985 to December 1987, paying Excise Duty except for three months. The Revenue argued that Carbide Sludge should be considered excisable goods based on a previous case involving Andhra Oxygen (P) Ltd. The respondents, represented by Shri K. Lakshmi Narayan, referenced a different case involving M/s. Asiatic Oxygen Ltd. & Other, where it was held that Carbide Sludge is not excisable goods under the Act.

The Tribunal considered the arguments presented by both parties and reviewed the previous judgments in the cases of Andhra Oxygen (P) Ltd. and M/s. Asiatic Oxygen Ltd. & Other. After analyzing the entire case law on the matter, the Tribunal concluded that Carbide Sludge is not excisable goods within the meaning of the Central Excises and Salt Act, 1944. The Tribunal noted that the emergence of Carbide Sludge during the manufacturing process of Oxygen and Acetylene Gas was inevitable and that selling the sludge did not change its classification as excisable goods. The judgment highlighted that the price charged for the sludge, even if it had some value, was not a determining factor in classifying it as excisable goods.

In light of the above analysis, the Appellate Tribunal upheld the order-in-Appeal that Carbide Sludge is not excisable goods and dismissed the Revenue's appeal. Any consequential relief to the respondents was to be provided according to the law, and any cross objections filed by the respondents were also disposed of accordingly.