Excise duty on spent sulphuric acid barred where trade notice treated it as non-manufactured and non-dutiable again.

Spent sulphuric acid cleared as a by-product was held not liable to excise duty because the relevant trade notice stated that it was not a manufactured product and would not be charged again. The Revenue failed to show that the clarification was inoperative during the disputed period. Departmental circulars were treated as binding on Central Excise officers even if they reflected a view different from the Court's own interpretation, and duty was therefore not leviable on the facts stated.

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Issues: Whether excise duty was leviable on spent sulphuric acid cleared as a by-product during the relevant period.

Analysis: The relevant departmental trade notice clarified that spent sulphuric acid was not a manufactured product and that it would not be charged to duty again. The Revenue did not show that this clarification was not operative during the period in dispute. The decision also proceeded on the principle that departmental circulars are binding on Central Excise officers, even where they adopt a view different from the Court's own interpretation.

Conclusion: Excise duty was not leviable on spent sulphuric acid on the facts of the case, and the appeal was allowed.

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