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of <h1>Sulphuric Acid in Detergent Production: Waste Product Exemption Upheld</h1> <h3>M/s Rohit Surfactants Pvt. Ltd., Shri Sandeep Pathak, Shri Murli Dhar Versus CCE, Meerut-I And (Vice-Versa)</h3> M/s Rohit Surfactants Pvt. Ltd., Shri Sandeep Pathak, Shri Murli Dhar Versus CCE, Meerut-I And (Vice-Versa) - TMI Issues Involved:Appeal against Order-in-Appell No.141-143/CE/APPL/MRT-I/2013 dated 19.11.2013 passed by the Commissioner of Central Excise (Appeals), Meerut-I regarding duty demand on Sulphuric Acid under Area Based Exemption Notification No.50/2003-CE dated 10.06.2003 for the period April to December, 2011.Detailed Analysis:1. Background of the Case:The appeals were filed against a common order passed by the Commissioner of Central Excise (Appeals), Meerut-I, with one appeal by the assessee-Appellants and three appeals by the Revenue. The dispute revolved around the manufacture of detergent products and the emergence of Sulphuric Acid as a by-product not eligible for Area Based Exemption.2. Merits of the Case:The impugned order upheld the duty demand on Sulphuric Acid but allowed the claim of the assessee-Appellants on limitation. The assessee-Appellants challenged the order on merit, while the Revenue contested the findings on limitation and non-imposition of penalties.3. Precedent and Tribunal's Decision:The Tribunal referred to a previous case involving a similar dispute and held that the spent Sulphuric Acid emerging as a by-product should be considered a waste product, qualifying for exemption under Notification No.89 of 95 CE. The Tribunal also noted that no manufacturing process occurred in the case, aligning with a previous decision.4. Legal Interpretation and Supreme Court Decisions:The learned counsel referred to a Supreme Court decision supporting the classification of Spent Sulphuric Acid as excisable goods. However, the Tribunal cited another Supreme Court ruling emphasizing that Spent Sulphuric Acid, though a waste product, cannot be considered a final product based on commercial reality in trade.5. Tribunal's Decision and Rationale:The Tribunal concluded that Sulphuric Acid emerging during detergent manufacturing is a waste product, despite being sold for a consideration. Citing the precedent and legal interpretations, the Tribunal set aside the impugned order, allowing the appeal of the assessee-Appellants and dismissing the appeals filed by the Revenue.6. Final Judgment:The Tribunal allowed the appeal filed by the assessee-Appellants and dismissed the appeals filed by the Revenue, based on the understanding that Sulphuric Acid was a waste product in the manufacturing process, in line with legal interpretations and precedents.This comprehensive analysis highlights the key legal aspects, interpretations, and precedents considered in the judgment, leading to the final decision in favor of the assessee-Appellants.
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