9911796707
TMI Blog1998 (1) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... are licensed for the manufacture thereof - the stand of the Revenue is that these are excisable by-products classifiable under the same Heading as the main products, viz. T.I. 68, while the assessees claim that the 2 disputed items are waste and scrap, and hence not excisable. 2. We have heard Shri A.K. Agarwal, learned SDR and Shri T. Viswanathan, learned Counsel and perused the records. 3. It is brought out from the Deputy Chief Chemist s report that the items which are the result of distillation of Beta Naphthol, contain an organic compound. They thus have a separate identity with separate physical and chemical characteristics different and distinct from their raw material i.e. naphthalene, sulfonic acid and caustic soda. Further the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rket for being sold but fetches commercial value as a distinct commodity identified by its own character, name and normal use. 6. Therefore, the argument that the materials in question were merely a by-product does not advance the cause of the appellants. I also observe that the samples were tested; and one of the item was clearly identified as a Beta Naphthol Tar, but the other could not be identfied as a Beta Naphthol Tar is concerned, the identity having been established, it was immaterial whether it was of commercial grade because chemicals of various grades could be brought to the market for sale and purchase and therefore, what was required to be seen was whether it was a known commodity in the market as such. In the case of second ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Bon Acid, Beta Naphthol is reacted at high temperature with caustic soda and carbon dioxide. During the course of this reaction part of Beta Naphthol decomposes to form organic tarry impurities. These tarry impurities, which constitute waste, are separated by the processes of neutralisation and distillation as described above." The most significant part of the reply is that it contains the respondents own admission that two of the products manufactured by them are Beta Naphthol Tar and Bon Acid Tar. This shows that the respondents themselves are aware of and conscious of their identity. This is of much greater significance in respect of Bon Acid Tar in view of the inability of Dy. Chief Chemist noted above to identify it correctly. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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