Non-excisability of soya sludge under the tariff heading led to the duty demand being set aside.

Soya sludge, also described as soya gum, was held not to be excisable and not classifiable under Chapter 15.22 of the Central Excise Tariff. The Tribunal applied its earlier ruling in the assessee's own case, which had followed a prior decision on the same product and tariff entry, and concluded that the duty demand could not be sustained. The demand was therefore set aside and relief followed accordingly.

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Issues: Whether soya sludge was excisable and classifiable under Chapter 15.22 of the Central Excise Tariff Act, 1985, so as to sustain the demand of duty.

Analysis: The Tribunal noted that the same issue had already been decided in the assessee's own case for an earlier period. It followed the earlier order, which in turn relied on the Tribunal's decision holding that soya sludge, also described as soya gum, was not excisable and did not fall within the relevant tariff heading. On that basis, the impugned demand could not be sustained.

Conclusion: The issue was decided in favour of the assessee, and the demand was set aside.

Final Conclusion: The appeal succeeded with consequential relief, if any.

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