Manufacturing waste in pharmaceutical packing was treated as eligible under Rule 57D, with no High Court reference warranted.

Broken glass bottles generated during the filling and packing of medicines were treated as manufacturing waste because packing was part of the manufacturing process until the goods were packed in the container required by the statutory regime. On that footing, the waste arose in the course of manufacture and fell within Rule 57D of the Central Excise Rules, 1944. A reference to the High Court under Section 35G was also not considered necessary, as no contrary authority or persuasive alternative view was shown to support it.

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Issues: Whether broken glass bottles generated during filling and packing of medicines constitute manufacturing waste covered by Rule 57D of the Central Excise Rules, 1944, and whether a reference to the High Court was warranted under Section 35G of the Central Excises and Salt Act, 1944.

Analysis: The manufacturing activity for packed pharmaceutical products was treated as continuing until the medicines were packed in the container required by the applicable statutory regime. Since packing was a statutory requirement, waste arising during the packing stage was regarded as waste generated in the course of manufacture. On that basis, the broken bottles were held to fall within Rule 57D, and no contrary authority or convincing alternative view was shown to justify a reference.

Conclusion: The broken glass bottles were held to be manufacturing waste covered by Rule 57D, and the request for reference to the High Court was not entertained.

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