9911796707
TMI Blog1993 (5) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... non-excisable. During the proceedings before the Assistant Collector and also in their appeal before the Collector (Appeals) they claimed that Caustic Lye was not excisable since it was a waste product like slug which arose during the manufacture of Oxygen. In the impugned order the Collector (Appeals) held that Caustic Lye was chargeable to duty under T.I. 68 since in was a mixture of Sodium Hydroxide and Sodium Carbonate which finds use in certain industries and it had a name and some marketability. 2. On behalf of the appellants the learned advocate Shri K.K. Lahiri with Ms. Aradhana Kumar, advocate appeared before us. Shri Lahiri stated that Caustic Lye is a waste product which arises in the manufacture of Oxygen at plant of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in these decisions the Tribunal had also held that even if some metal can be recovered from such wastes, it would not be a commercially viable proposition since the recovered metal would be of a low purity or quality. He contended that the extraction of Sodium Hydroxide and Sodium Carbonate from the said lye was not commercially viable. He argued that the mere fact that a waste product has some marketability would not change its character from a waste to an excisable item. He stated that in the case of Indian Aluminium Co. Ltd. reported in 1980 (6) E.L.T. 146 also it had been held that dross and skimmings arising in the process of manufacture of Aluminium could be disposed of for a price yet they could not be deemed as excisable. In sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of Oxygen from atmospheric air at the appellants plant was chargeable to duty under Item 68 of the erstwhile Central Excise Tariff. 5. According to the appellants Oxygen was being manufactured at their 100 TPD Tonnox Plant by passing atmospheric air through a tower through which Caustic Soda (NaOH) solution circulated. The Carbon-di-Oxide (C02) of the air reacts with NaOH solution to form Sodium Carbonate (Na2C03) and water. Circulation of Caustic Soda solution is continued till its concentration comes down to about 10% level. The spent Caustic Soda solution, water and Sodium Carbonate are then drained out as a lye solution. The process involved continuous infection of Caustic Soda and draining out of Caustic lye . 6. The appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on slag, spent earth etc. which in a series of decisions have held by the Tribunal as non-excisable on the basis of the Bombay High Court s decision in the case of Indian Aluminium Co. Ltd. v. A.K. Bandyopadhyay reported in 1980 (6) E.L.T. 146 wherein it was held that dross and skimmings arising during the course of manufacture of aluminium sheets out of aluminium ingots was not the result of treatment, labour or manipulation whereby the end product was dross and skimmings and accordingly such refuse or scum thrown off during the process of manufacture could not be considered as a by-product. It was further held that merely because it could fetch some price in the market would not justify it being clothed with the dignity of being called a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of dross is scum thrown off from metals in smelting; refuse; rubbish or worthless impure metal . The dictionary meaning of skimming is that which is removed or obtained from the surface by skimming. Skimmings are mostly thin oxides layers normally obtained by skimming a molten bath prior to metal transfer on casting. The skimmings operation is essential to help dissolved gases escape from molten bath. Re-melting of skimmings along with normal production melts impairs metal quality of the raw material and consequently loses its original chemical composition and characteristics. According to the petitioners, dross and skimmings represent process loss or melt loss." 9. In this regard we find that in the case of Khandelwal Metal and En ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed Chemical Dictionary, Tenth Edition Combination of Soda ash and Caustic Soda in definite proportion marketed for purposes where an alkali is needed ranging in causticity between two materials. Causticized ash is usually designated by its caustic content and the range of standard marketed products embraces 7%, 10%, 15%, 25%, 36%, 45% and 67% of Caustic Soda . The disputed Caustic lye was admittedly a mixture having caustic soda or (Sodium Hydroxide) content of about 5.2 to 5.3% and Sodium Carbonate (Soda ash) content between 9.7% and 10.6%. Even though the Caustic Soda content of Caustic lye was slightly less than 7% found in the standard marketed product known as Caustic ash it is evident that it could be treated as Causticized a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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