Pressmud as residual waste is not an excisable final product, so Rule 57CC does not apply.

Pressmud generated as a residual waste in sugar manufacture was treated as a non-excisable by-product and not a distinct final product. Prior decisions holding pressmud to be non-excisable were followed, and that position had also been affirmed by the Supreme Court. As a result, Rule 57CC, which applies only where common inputs are used in the manufacture of exempted final products, had no application. The Revenue's challenge therefore failed.

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Issues: Whether pressmud, which emerged as a residual waste in the manufacture of sugar, was an excisable final product so as to attract the amount payable under Rule 57CC.

Analysis: Pressmud was found to be a residual waste arising in the course of manufacture and not a distinct excisable product. The earlier decisions holding pressmud to be non-excisable were followed, and that view had also been affirmed by the Supreme Court. On that footing, Rule 57CC, which applies where common inputs are used in the manufacture of exempted final products, had no application.

Conclusion: Pressmud was not an excisable final product, and Rule 57CC was not attracted; the Revenue's challenge failed.

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