Mere saleability of refinery residues does not make them excisable goods unless the requirement of manufacture is satisfied.

Residues arising during refining of crude sunflower oil, including sunflower mud, soap stock, gums, wax, fatty acids and spent earth, were held not to be liable to central excise duty because mere saleability does not make waste or residue excisable goods. The Tribunal followed the consistent view and its earlier decision in the appellant's own case that such by-products or residues are not manufactured products unless the requirement of manufacture is satisfied. On that reasoning, the dispute was resolved in favour of the assessee and the demand was set aside.

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Issues: Whether sunflower mud, soap stock, gums, wax, fatty acids, spent earth and similar residues arising during refining of crude sunflower oil are liable to central excise duty as excisable goods.

Analysis: The Tribunal followed the earlier decision in the appellant's own case and the consistent view that mere saleability of a waste or residue does not by itself make it a manufactured product. The products in question arise as residues in the refining process, and the reasoning already accepted in the appellant's case governed the present dispute.

Conclusion: The items were not liable to central excise duty, and the appeal was allowed.

Ratio Decidendi: Mere saleability of residues or waste products arising in a manufacturing process does not make them excisable goods unless they satisfy the requirement of manufacture.

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