Tribunal: Spent solvents post-purification not excisable goods. Precedents cited. Revenue's claims lack merit.

The Tribunal ruled in favor of the appellant, holding that spent solvents, after purification and distillation, are not excisable goods and therefore not liable for excise duty. Citing precedents from the High Court of Andhra Pradesh and the Supreme Court, the Tribunal emphasized that the law established the non-excisability of spent solvents. Consequently, the Tribunal set aside the Revenue's demands and allowed the appeals, affirming that the Revenue's claims lacked merit.

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Issues Involved:
1. Demand of excise duty on goods cleared as spent solvents.
2. Excisability of spent solvents after purification and distillation.
3. Applicability of Section 2(d) of the Central Excise Act, 1944.

Issue-Wise Detailed Analysis:

1. Demand of excise duty on goods cleared as spent solvents:
The primary issue in these appeals concerns the demand of excise duty on goods cleared as spent solvents. The Revenue contended that the spent solvents, which are distilled and purified in the appellant's premises, are manufactured products and thus liable for excise duty. The provisions of Section 2(d) of the Central Excise Act, 1944, were invoked by the Revenue to substantiate their claim.

2. Excisability of spent solvents after purification and distillation:
The Tribunal found that the issue of excisability of spent solvents is no longer res integra. The Jurisdictional High Court of Andhra Pradesh, in the appellant's own case (2010 (259) ELT 673 (AP)), had already concluded that spent solvents are not excisable. This judgment was upheld by the Supreme Court, as reported in 2011 (269) ELT 147 (S.C.), thereby settling the law in favor of the appellant. The Tribunal reiterated that the spent solvents, after undergoing purification and distillation, do not become marketable goods and hence are not subject to excise duty. The Tribunal also referenced several other cases, including CCE, Hyderabad v. Aurobindo Pharma Ltd. and CCE, Hyderabad v. Everest Organics Ltd., which supported the non-excisability of spent solvents.

3. Applicability of Section 2(d) of the Central Excise Act, 1944:
The Tribunal noted that the Revenue's argument based on Section 2(d) of the Central Excise Act, 1944, was not tenable. The Tribunal emphasized that the excisability of a product determines the liability for excise duty. Since spent solvents are not considered excisable products, the question of levying excise duty does not arise. The Tribunal also highlighted that the Revenue had not appealed against earlier orders where similar issues were decided in favor of the assessee, further reinforcing the non-excisability of spent solvents.

Conclusion:
The Tribunal set aside the impugned orders and allowed the appeals with consequential relief. The law, as settled by the High Court of Andhra Pradesh and upheld by the Supreme Court, clearly indicates that spent solvents are not excisable. The appeals filed by the Revenue were found to be devoid of merits, and the Tribunal upheld the earlier decisions favoring the assessee.

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