Manufacturing residues are not excisable goods when they are merely spent earth and spent nickel catalyst arising as by-products.

Spent earth and spent nickel catalyst arising as residue in manufacture were treated as not being goods brought into existence by manufacture, so they were outside excise liability. The Tribunal applied settled precedent that refuse, ashes, rubbish and similar manufacturing by-products do not become excisable merely because they may be sold or referred to in the tariff or an exemption notification. On that basis, the items were held not to be excisable goods and no duty was leviable.

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Issues: Whether spent earth and spent nickel catalyst, arising as residue in the course of manufacture, were excisable goods liable to duty under sub-heading 1507.00 and the relevant exemption notification.

Analysis: The Tribunal followed earlier decisions holding that spent nickel catalyst and spent earth are not products brought into existence by manufacture. It treated such residues as not goods for excise purposes, and relied on settled precedent that refuse, ashes, rubbish, and similar by-products arising during manufacturing do not become excisable merely because they may be sold or find mention in the tariff or an exemption notification. On that basis, the cited line of authorities was applied without taking a different view.

Conclusion: The items were held not to be excisable goods and no duty was leviable on them; the appeal failed.

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