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TMI Blog2012 (8) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... in or in relation to the manufacture of final products - demand of 10% / 5% on press mud and sludge, which are in the nature of by-product and waste and also non-excisable cannot be sustained - appeals are allowed. - E/14 to 16/2012 - 340, 341, 342/12 - Dated:- 30-3-2012 - Chittaranjan Satapathy, J. For Appellant: Shri K Mani, Cons. For Respondent: Shri Parmod Kumar, SDR Per: Chittaranjan Satapathy: Heard both sides. 2. The brief facts of the case as recorded in the impugned Order-in-Appeal are that the appellants are manufacturers of sugar, molasses, rectified spirit and carbon-di-oxide. In the process of manufacture, press mud and sludge are produced which have been sold by the appellants for some value. The case of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... guments from both sides, the case records as well as the cite case laws. The impugned goods namely, press mud and sludge are classifiable respectively under Central Excise Tariff Heading 2303 20 00 and 2303 30 00. Regarding such classification there is no dispute raised by either side. However, against the entries in both these Headings, the duty amounts specified is nil. The Explanation to Section 2(d) is a deeming clause which renders any goods which are capable of being bought and sold for a consideration to be marketable. The cited decision of the Hon'ble Allahabad High Court in the case of Hindalco Industries (supra) is also to this effect. This deeming fiction became necessary to be created in the light of various judgments that merel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h are exempt from the whole of duty of excise leviable thereon and includes goods which are chargeable to nil rate of duty. As per this definition, the impugned goods namely press mud and sludge would be covered under the definition "exempted goods", though the same cannot be treated as 'excisable goods" for the reasons stated in paragraph 5 above. The question raised in this case is whether in terms of Rule 6(3)(i), an amount equal to 10% / 5% would be payable on such goods. While considering this question, I take note of the fact that these goods are definitely in the nature of by-product and waste. In the cited decision in Rallies India (supra), the Hon'ble Bombay High Court, reversing the earlier decision of the Larger Bench of the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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