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TMI Blog2016 (9) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be set aside. Since the impugned orders wherein the demand of duty liability has been set aside, appeals No. E/89375/13 and E/85614/15 consequently needs to be allowed and rebate amount appropriated against pending demand of appeals are to be held as incorrect. - Decided in favour of appellant with consequential relief - E/3289/2005, E/1210/2007, E/1001/2009, E/830/2007, E/1255/2011, E/970/2012, E/969/2012, E/86947/2013, E/85312/2015, E/86506/2015, E/86507/2015, E/89375/2013, E/85614/15 - A/88858-88870/16/EB - Dated:- 14-6-2016 - Mr. M.V. Ravindran, Member (Judicial) and Mr. Raju, Member (Technical) Shri Prakash Shah, Advocate with Shri Mihir Mehta, Advocate for appellant Shri H.M. Dixit,Asst. Commr (AR) for responden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Show-cause notices were issued. The lower authorities upheld the demand of duty along with interest and also imposed penalties. 4. Learned Counsel attacks the impugned orders on the ground that the said orders are traveling beyond the show-cause notices inasmuch as the show-cause notices seeks demand of duty on clearance of waste solvent in the guise of bio-manure. It is submitted that report of Range Superintendent in-charge vide letter C.Ex./MHD-V/Novartis/04-05/622 dated 22.11.2006 has categorically stated that the bio-manure is solid waste which is filled in old used bags at random and is being disposed of as bio-manure. He would submit that the department is not clear as to on which item they want to demand duty. It is his s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be first held as manufacturing activity under Section 2(f) and satisfy conjunctively for the demand of duty. 5. Learned D.R. would draw our attention to the findings recorded by the lower authorities. It is his submission that appellant had cleared waste solvents in the guise of bio-manure, hence the demand was correctly confirmed and upheld by the lower authorities. 6. We have considered the submissions made at length by both sides and perused the records. 7. Undisputed facts are that the appellant had during the course of manufacturing of bulk drugs generated waste arising in fermentation process is treated, dried and compost and removed as bio-manure by filling them in old bags without payment of duty. It is also und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1944, for demand of duty, was upheld by Larger Bench of this Tribunal. Their Lordships while upturning the Larger Bench decision held as under:- 22 That the Revenue does not wish to abide by them would not mean that the Tribunal is justified in not following them. We find that the attempt made by the Tribunal to hold that what is marketable and satisfies the requirement stipulated in the Explanation necessarily means that they are liable for imposition of duty under Section 3 is directly contrary to the binding Judgments of the Hon ble Supreme Court on the same issue. The attempt of the Tribunal in para 6.5 in proceeding to analyse that the process and concluding that nobody deliberately manufactures waste, dross and scrap is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pharma (supra). Hon'ble High Court of Andhra Pradesh has in a speaking order (as cited herein above) categorically recorded that waste solvent that arises during the course of manufacturing of bulk drugs are not dutiable. 7.3 In view of the foregoing, we hold that the impugned orders wherein the demand of duty is confirmed are unsustainable and liable to be set aside and we do so. Since the impugned orders wherein the demand of duty liability has been set aside, appeals No. E/89375/13 and E/85614/15 consequently needs to be allowed and rebate amount appropriated against pending demand of appeals are to be held as incorrect. These two appeals are also needs to be allowed and we do so. 8. All the appeals are allowed with conse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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