Non-excisable product classification fails for soya sludge, and central excise duty demand cannot survive.

Soya sludge, also described as soya gum, was held not excisable on the basis of an earlier Tribunal ruling covering the same product. As the product did not fall within Chapter sub-heading 15.22 of the Central Excise Tariff Act, 1985, the attempted classification failed and the central excise duty confirmation could not survive. The matter was decided in favour of the assessee, and the duty demand was unsustainable because a non-excisable product cannot be subjected to excise duty under the claimed tariff heading.

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Issues: Whether soya sludge is excisable and classifiable under Chapter sub-heading 15.22 of the Central Excise Tariff Act, 1985, and whether the duty confirmation could stand.

Analysis: The item in question was held to be covered by an earlier Tribunal decision on the same product, where soya sludge, also described as soya gum, was found not to be excisable. That precedent had already held that the product did not fall within the relevant tariff heading, and the present matter followed the same legal position. Once the product was not excisable, the confirmation of central excise duty could not survive.

Conclusion: The issue is decided in favour of the assessee. Soya sludge is not excisable and the duty demand based on classification under Chapter sub-heading 15.22 cannot be sustained.

Ratio Decidendi: A product found, on binding precedent, not to be excisable under the relevant tariff heading cannot be subjected to central excise duty.

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