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TMI Blog2023 (7) TMI 578X X X X Extracts X X X X X X X X Extracts X X X X ..... ct i.e. Ferric/ Iron Oxide emerged as a result of chemical reaction of a waste product WPL in IGPL s reactor cannot be said to be the consideration for WPL as the product has to be assessed in the form in which it is cleared. WPL is nothing but waste which emerges in the process of manufacture of steel articles or finished goods. It s not an end product or finished product and merely because it fetches some price in the market does not bring it out from the category of waste. It has neither any marketability nor saleability and therefore it s not liable to any duty. Waste or rubbish, which is thrown up in the course of manufacture, cannot be said to be a produce of manufacture and cannot be said to be exigible to excise duty - the appellant is not at all involved in converting of Ferric/Iron Oxide out of the said WPL and resultantly no demand can sustain against the appellant on that count also. The appeal filed by the appellant is allowed. - Excise Appeal No. 1975 of 2012 - A/86086/2023 - Dated:- 11-7-2023 - MR. AJAY SHARMA, MEMBER (JUDICIAL) AND MR. ANIL G. SHAKKARWAR, MEMBER (TECHNICAL) Ms. Mansi Patil, Advocate Mr. Viraj, Advocate for the appellant Shri Xavi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise duty amounting to Rs.7,02,413/- alongwith Education Cess (EC) of Rs.14,048/- Rs.3,332/- Higher Education Cess (HEC) with interest of Rs.1,20,750/- and penalty and also for appropriation of the duty amounting to Rs.7,02,413/- alongwith EC HEC and interest paid by the appellant on 12.8.2008 during the course of investigation and the same was culminated into the Adjudication Order i.e. Orderin- Original dated 29.1.2010 by which the demands raised in the show cause notice were confirmed alongwith interest and penalty and appropriation of amount deposited during investigation was also confirmed. 4. Learned counsel for the appellants submit that during the course of manufacture of the finished products i.e. Galvanised Steel pipes, to remove impurity and rust accumulated on the raw material, the process of pickling is carried out on the raw material i.e. steel with Hydrochloric Acid to remove the impurities and due to which WPL emerged which cannot be reused for the said process and to remove impurities from the said WPL it is necessary to process it and convert it into regenerated acid i.e. Hydrochloric Acid of lesser strength. For the said purpose the appellant sent WPL to IG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the present case as in that case the assessee/appellant entered into contract with Honda India for supply of auto parts used in manufacture of motor vehicles and for that purpose the appellant had imported raw material and in some emergent situation they also air lifted the raw material which resulted in extra cost to the appellant but later on Honda India cancelled the purchase order, as a result the auto parts which were manufactured for delivery to Honda India, were sold by the appellant therein as scrap. So that value of scrap whether to be included in the transaction value or not was the issue therein. The scrap therein were not waste as such but those were the auto parts manufactured by the appellant for Honda India which were later on cancelled by the said purchaser. Whereas in the instant matter Waste Pickle Liquor (WPL) emerged during the pickling process i.e. process of removing impurities and rust on the wires manufactured by the appellant. It emerged as waste product after the process of prickling and does not have a market of its own. 7. On identical set of facts wherein also the credit notes were issued by IGPL to the assessee therein and differential duty w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and as such the clearance value i.e. Re.1/- per M.T. appears to be an undervaluation and therefore the department issued show cause notice dated 30.10.2009 to the Appellants demanding Rs.2,115/- being the differential duty with interest and penalty. The said demand was confirmed by the Adjudicating Authority with equal penalty vide Order-in-Original dated 4.8.2010. First Appeal filed by the Appellants was rejected by the Commissioner (Appeals), Central Excise, Mumbai Zone-I vide Order-in- Appeal dated 28.2.2011. 3. We have heard learned counsel for the Appellants and learned Authorised Representative for the Revenue and perused the Memo of Appeal filed by the Appellants. In order to understand the issue we have to see what is WPL? Is it a waste or some manufactured product? According to learned counsel, the rust and impurities on the coils are simply removed by way of application of hydrochloric acid on the coil. This process of application of hydrochloric acid on the coil is called pickling process. After undertaking the pickling process the mixture of hydrochloric acid and the impurities and rust, is termed as WPL. Such WPL is nothing but waste which is not emerging by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that receipt of sale proceeds of the by-product i.e. Ferric/ Iron Oxide emerged as a result of chemical reaction of a waste product WPL in IGPL s reactor cannot be said to be the consideration for WPL as the product has to be assessed in the form in which it is cleared. WPL is nothing but waste which emerges in the process of manufacture of steel articles or finished goods. It s not an end product or finished product and merely because it fetches some price in the market does not bring it out from the category of waste. It has neither any marketability nor saleability and therefore it s not liable to any duty. Waste or rubbish, which is thrown up in the course of manufacture, cannot be said to be a produce of manufacture and cannot be said to be exigible to excise duty. Another thing the appellant is not at all involved in converting of Ferric/Iron Oxide out of the said WPL and resultantly no demand can sustain against the appellant on that count also. 9. In view of the discussions made hereinabove, the impugned order is set aside and the appeal filed by the appellant is allowed with consequential relief, if any. (Pronounced in open Court on 11.07.2023) - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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