Spent nickel catalyst not excisable where it does not arise from manufacture or qualify as goods

Spent nickel catalyst was held not to be excisable because it did not arise out of manufacture and did not constitute goods. The Tribunal followed its earlier decision and rejected the Revenue's reliance on Modvat credit usage and tariff classification, holding those factors insufficient to make the product dutiable. The Revenue's appeal therefore failed.

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Issues: Whether spent nickel catalyst is an excisable commodity and therefore liable to duty.

Analysis: The Tribunal followed its earlier decision, which had applied the principle that spent nickel catalyst does not arise out of manufacture and does not constitute goods. On that basis, the product was treated as not excisable, notwithstanding the Revenue's reliance on its use as an input on which Modvat credit had been taken and its classification under the tariff heading relied upon by the Revenue.

Conclusion: Spent nickel catalyst is not an excisable commodity. The appeal filed by the Revenue fails.

Ratio Decidendi: A product that does not arise out of manufacture and is not goods is not excisable.

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