Excisability of scrap arising during manufacture can extend to unintended by-products; pre-deposit waiver was refused.

Glass scrap arising from bottles broken during the filling process was treated as potentially excisable because a commodity emerging in the course of manufacture may attract duty even if it was not the assessee's intended product. The interim view rejected the argument that the scrap was not manufactured merely because the business activity was beverage production rather than bottle production. On that prima facie basis, waiver of pre-deposit was refused and the appellant was directed to deposit the full duty demand.

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Issues: Whether glass scrap arising from bottles broken during the filling process was liable to duty and whether waiver of pre-deposit of the demanded duty should be granted.

Analysis: The order records a prima facie view that a commodity emerging in the course of manufacture may still be excisable even if the assessee does not set out to manufacture that commodity. The contention that scrap was not manufactured because the appellant manufactured beverages and not bottles was found difficult to accept at the interim stage.

Outcome: The application for waiver of deposit was declined and the appellant was directed to deposit the entire duty amount.

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