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of <h1>Carbide Sludge Ruled Not Excisable; Industrial Waste, Not Marketable Commodity</h1> The Appellate Tribunal CEGAT, New Delhi, held that Carbide Sludge is not excisable under the Central Excise Tariff Act, 1985, as it is considered ... Carbide sludge Issues: Classification of Carbide Sludge under CETA, 1985; Excisability of Carbide Sludge as a marketable commodityIn this case, the Appellate Tribunal CEGAT, New Delhi, heard appeals arising from the classification of Carbide Sludge under Chapter sub-heading 2849.90 of the Central Excise Tariff Act, 1985. The Collector (Appeals) had confirmed the classification, leading to demands of duty against the appellants. However, the penalties imposed were set aside by the lower appellate authority. The appellant, a public limited company producing industrial gases, argued for a decision on merits. The production process involves calcium carbide reacting with water to release acetylene gas, leaving behind carbide sludge, which is lime waste mixed with water and devoid of carbide content. The Tribunal referred to precedents like Collector of Central Excise, Guntur v. Andhra Oxygen P. Ltd., Asiatic Oxygen Ltd. v. Collector of Central Excise, and Union of India v. Indian Aluminium Company to establish that carbide sludge is not a marketable commodity but an industrial waste arising in the manufacturing process. The Tribunal emphasized the test of marketability as crucial for excisability, as held in various Supreme Court judgments. Therefore, following the precedent, the Tribunal held that carbide sludge is not excisable and set aside the demands and penalties.This judgment primarily dealt with the classification of Carbide Sludge under the Central Excise Tariff Act, 1985, and the excisability of Carbide Sludge as a marketable commodity. The Tribunal analyzed the manufacturing process of dissolved acetylene gas involving calcium carbide and the generation of carbide sludge as a byproduct. The Tribunal referred to legal precedents to establish that carbide sludge is not a marketable commodity but an industrial waste arising in the manufacturing process, emphasizing the test of marketability as crucial for excisability. The judgment highlighted the distinction between a marketable commodity and industrial waste, ultimately leading to the decision to set aside the demands and penalties imposed on the appellant.
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