Spent earth not excisable under central excise law after binding precedent on manufactured product status

Spent earth was held not to be an excisable manufactured product for central excise purposes, as the issue was already decided by a Larger Bench. The Division Bench applied judicial discipline and declined to reopen or review that binding precedent. On that basis, it accepted that spent earth does not attract central excise duty.

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Issues: Whether spent earth is liable to central excise duty as an excisable manufactured product.

Analysis: The issue had already been decided by the Larger Bench, which held that spent earth is not liable to excise duty. The Division Bench noted that it was bound by that decision in judicial discipline and could not reopen the matter by reviewing the Larger Bench view. Following the binding precedent, the Bench accepted that spent earth did not amount to a manufactured product for excise purposes.

Conclusion: Spent earth is not excisable and is not liable to central excise duty.

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