Press-mud is not an excisable final product, so Rule 57CC liability does not arise.

Press-mud arising in sugar manufacture is treated as residual waste and not as a marketable excisable commodity. Because Rule 57CC applies only where a manufacturer produces excisable final products alongside exempted or nil-rated final products, it cannot be invoked where the item itself is not excisable. Liability under Rule 57CC therefore does not arise in relation to press-mud.

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Issues: Whether press-mud arising in the manufacture of sugar is an excisable final product so as to attract liability under Rule 57CC of the Central Excise Rules.

Analysis: Press-mud was treated as residual waste arising during the manufacture of sugar. The earlier Tribunal view relied upon held that press-mud is not a marketable commodity and therefore is not excisable. Rule 57CC applies only where a manufacturer produces final products chargeable to duty along with exempted or nil-rated final products; once the item in question is not excisable, the question of its exemption or duty treatment under that rule does not arise.

Conclusion: Press-mud is not an excisable final product, and liability under Rule 57CC does not arise.

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