2016 (9) TMI 88

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....iii. E/1001/2009       iv. E/830/2007 v. E/1255/2011 vi. E/970/2012 vii. E/969/2012 viii. E/86947/2013 ix. E/85312/2015 x. E/86506/2015 xi. E/86507/2015 xii. E/89375/2013 xiii. E/85614/15 2.  By appeals No. E/89375/13 and E/85614/15, the appellant is challenging the order of the lower authorities wherein the amount has been appropriated against sanctioned rebate claim of the above appeals. 3.  The relevant facts that arise for consideration are the appellant herein is a manufacturer of bulk drug called 'Rafamicin'.  For the manufacturing of the said bulk drug, appellant uses various solvents which are reused time and again after subjecting to some process and a....

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.... his submission that when waste solvent are cleared by them they discharge appropriate  duty on such waste solvents.  It is his further submission that assuming that they cleared waste solvent in the guise of bio-manure, the judgement of the Tribunal in the case of CCE v. Lee Pharma Pvt. Ltd. - 2010 (252) ELT 557 (Tri. - Bang.) and CCE v. Aurobindo Pharma Ltd. - 2010 (249) ELT 415 (Tri. - Bang.) will help them as it is clearly held that waste solvent generated during the course of manufacturing on final products are not  leviable to Central Excise duty.  He would submit that the judgement in the case of Aurobindo Pharma Ltd. (supra) was carried in appeal by the Revenue to the High Court of Andhra Pradesh and the said jud....

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....ing them in old bags without payment of duty.  It is also undisputed that the bio-manure did bring some consideration to the appellant.  We find that the demand of duty is on the ground that the appellant had cleared waste solvent in the guise of bio-manure.  This allegation in the show-cause notice is not properly addressed by the adjudicating authority as well as the first appellate authority.  If the waste solvent is cleared from the factory premises of the appellant as bio-manure, undoubtedly the same should be in the form of liquid.  The Range Supdt. of the Central Excise of the appellants factory has categorically recorded that bio-manure is solid waste which is filled in gunny bags and removed from the facto....

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....Tribunal in para 6.5 in proceeding to analyse that the process and concluding that nobody deliberately manufactures waste, dross and scrap is in direct conflict with the findings of the Honble Supreme Court. Waste and scrap emerge as a by-product in the course of manufacture of other products. The whole purpose of making these observations is to justify the conclusion that because there is a reference to these items in the Tariff Entry or the Tariff Schedule that would change the colour of the controversy. That would enable the Tribunal to then hold that the earlier Judgments and in the case of this very Assessee are no longer good law. However, we do not see how the decision in the case of Grasim Industries Ltd. (supra) and particularly t....