Waste and scrap from manufacturing process held non-excisable where no tariff entry or marketability was shown.

Waste and scrap generated during manufacture of guar gum powder, tamarind kernel powder and carboxymethyl starch was examined for excisability and tariff classification. The material consisted of dust collected in pollution-control filter bags and oversize rejected material containing impurities and contamination. Although the Revenue treated it as an inferior final product, the record did not show that it fitted any tariff sub-heading or that it was marketable as a distinct excisable product. It was therefore held not excisable and not classifiable under the Central Excise Tariff, and the appeal was rejected.

---

---

Issues: Whether waste and scrap generated during the manufacture of guar gum powder, tamarind kernel powder and carboxymethyl starch was excisable and classifiable under the Central Excise Tariff.

Analysis: The waste in dispute arose in the course of the admitted manufacturing process and consisted of dust collected in pollution-control filter bags and oversize rejected material containing impurities and contamination. The Revenue did not dispute the manner in which the waste was generated, but sought to treat it as a final product of inferior quality. The record, however, showed that the material was neither shown to fit any tariff sub-heading nor established to be marketable as a distinct excisable product.

Conclusion: The waste and scrap was not excisable and did not fall under any tariff sub-heading; the appeal was therefore rejected.

---