Mine waste classification defeats excise credit demand where the goods were shown to be residue, not limestone.

Where goods were established as mine waste or mineral reject, and not limestone, the excise credit rules for demanding a percentage-based payment did not apply. That classification was supported by the Indian Bureau of Mines clarification and by State Industries Department disposal permission, both indicating that the material was waste or residue rather than limestone. On that factual footing, the demand raised under the excise credit rules was held unsustainable, and the Revenue's challenge failed.

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Issues: Whether the amount equivalent to a percentage of the value of the goods sold was payable under the excise credit rules when the goods were found to be mine waste or mineral reject and not limestone.

Analysis: The finding that the goods were mine waste or mineral reject was supported by the clarification of the Indian Bureau of Mines and remained unchallenged. The disposal permission granted by the State Industries Department also supported the conclusion that the goods were waste or residue and not limestone. On that footing, the provisions invoked for demanding payment under the excise credit rules did not apply.

Conclusion: The demand was not sustainable and the appeal by the Revenue failed.

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