Blank CDs in replication process not dutiable under central excise, following prior Tribunal and High Court guidance.

Blank CDs emerging during the replication of Audio CDs, Video CDs and CD-ROM software were held not to attract central excise duty because they arose as an intermediate product in the manufacturing process and were not treated as dutiable final goods. The Tribunal followed its earlier decision on the same issue, as well as the Delhi High Court ruling relied on there, and concluded that no duty was chargeable on the blank CDs. The impugned order was set aside and the appeal was allowed.

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Issues: Whether blank CDs emerging during the replication of Audio CDs, Video CDs and CD Rom Software were liable to central excise duty.

Analysis: The Tribunal followed its earlier decision on the same question and the Delhi High Court ruling relied upon therein. It held that the blank CDs created in the course of the manufacturing process did not attract duty.

Conclusion: No central excise duty was chargeable on the blank CDs; the impugned order was set aside and the appeal was allowed.

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