2014 (3) TMI 968

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....g No. 38231900 of the First Schedule to the Central Excise Tariff Act, 1985 and is leviable to duty and consequently, proceedings were initiated culminating in the impugned order demanding Central Excise duty of Rs. 1,33,64,001/- for the period June 2010 to June 2011. No penalty has been imposed. 2. Learned counsel on behalf of the appellant submits that on the very same issue in Hyderabad Commissionerate, the matter was taken up and on one of the occasions, the matter had reached the Tribunal and the Tribunal dismissed the appeal filed by the Revenue taking a view that the item in dispute was waste which cannot be considered as by-product and therefore exempted under Notification No. 89/95-C.E., dated 18-5-1995 which exempts waste,....

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....p;   Bloomsbury English Dictionary           Unwanted Material, unwanted or unusable items, remains or by-products or household rubbish. (c)     Fairchild's Dictionary of Textiles           By-products created in the manufacture of fibers, yarns and fabrics. (d)     Black's Law Dictionary           Refuse or superfluous material, esp. that remaining after a manufacturing or chemical process. (e)     Oxford Advanced Learner's Dictionary of Current English           Materi....

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.... been expressly referred to in the said provision, though they would fall within the broader scope of the words "raw material". Since the natural gas used by the appellant does not tend to the making of the end product, it is not a "consumable". Therefore the word "waste" has to be read as being similar character to the words "Scrap and parings are marketable and having the value in commercial trade. 9.2 In the case of State of Gujarat v. Raipur Manufacturing Co. Ltd.-(1967) 1 SCR 618 : AIR 1967 S.C. 1066 wherein the Hon'ble Apex Court has observed as under :- "11. "Waste caustic liquor" is also regularly and continuously accumulated in the tanks in the process of mercerization of cloth. As pointed out by the High Court, ....

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....e manufacturer. 12. The appellant manufacture exempted goods i.e. Refined Rice Bran Oil from crude rice bran oil by manufacturing process which is aimed at getting rid of the subject goods and thereby to manufacturing the said exempted refined oil and product which is fit for human consumption. Therefore, the impugned goods arising in the course of manufacturing of exempted goods are waste within the scope and ambit of exemption notification despite being marketable, excisable and usable by others. Thus, the only manner in which the said notification can be strictly interpreted without adding anything and without resulting in any absurdity or redundancy" We find that the discussions above on waste and by-product made in the above....