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TMI Blog1986 (9) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... e In the course of manufacture of paper, the following items are received as waste: 1. Causticizing lime sludge (50% dry) 2. Effluent sludge (40% dry) 3. Causticiaing hypo grits 4. Clinker ash 5. Fine ash 6. Chipper House dust. All these years we have been throwing away the above products as waste except in the case of causticizing lime sludge in which a small quantity was sold to Messrs. India Cements and on which duty was demanded. An appeal was also filed with Appellate Collector of Central Excise, who has since passed orders in this regard. It is, of course, our contention that we are not liable to pay duty on lime sludge in view of the fact that it is a waste product. We have now been getting some enquiries from parties who are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished in your letter, dated 3.7.1980 that you have cleared 5519 314 MT of lime slug from 19.5.1980 to 30.6.1980 at Rs.2.50 per MT valued at Rs.13,798.29. Since you have cleared the goods without central excise formalities, you may please show cause why action under Rule 173 Central Excise Rules may not be taken against you and also with the duty due i.e., s.1,103.85 may not be collected from you. The reply may be sent to the Assistant Collector of Central Excise, Erode, within one week from the date of receipt of the show cause notice, failing which the matter will be decided (to the) ex-parte on the strength of the documents available. If preferred" you can have a personal hearing by the Assistant Collector of Central Excise, Erode ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he question that arose for consideration before him was as to whether dress and skimmings could be considered as a byproduct so as to come within the purview of excisable goods. The learned Judge expressed the view that refuse or cum thrown off during the process of manufacture cannot, by any stretch of imagination, be considered as a by-product and merely because such refuse or scum may fetch some price in the market does not justify it being clothed with the dignity of being called a by-product, much less and end-product or a finished product. I would have ventured to examine the proposition in detail but for the fact Mr. T. Somasundaram, learned Additional Central Government Standing Counsel appearing for the respondents brings to my not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the manufacturing process. It may be true to say that no prudent businessman will intentionally manufacture waste and scrap. But it is equally true to say that waste and scrap are the by-products of the manufacturing process. Sub-standard goods which are produced during the process of manufacture may have to be disposed of as 'rejects' or as scrap. But they are still the products of the manufacturing process. 'Intention' is not the gist of the manufacturing process. We have already dealt with this aspect of the matter and do not consider it necessary to elaborate upon it any further. The argument of legislative competence of the Parliament is a facet of the same contention. Section 3 of the Act of 1944 brings to duty excisable goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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