TaxTMI 
TaxTMI 
2018 (3) TMI 348
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....ant pointed out that they are engaged in the manufacture of bulk drugs. During the process of manufacture of bulk drugs they used Palladium Charcoal Catalyst which is imported from UK. During the process of manufacture the said catalyst facilitates the Reaction. Over the period of use the said catalyst looses its effectiveness/potency and has to be replaced periodically. Palladium the precious metal which is used to manufacture this catalyst. The spent catalyst is cleared by the appellant by way of sale. A demand of duty on the said clearances for the period November 2003 to January 2007 was raised. The duty was demanded holding that the spent catalyst is classifiable under Heading 2620.00 of the Central Excise Tariff Act, 1985 and chargeab....
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.... (iv) Commissioner of Central Excise Vs. Deepak Fertilizers & Petrochem Corporation 2004 (178) ELT 686. 2.3. Ld. Counsel argued that catalyst cannot be considered as raw material used in the process of manufacture as it does not form part of the end-product. He thus argued that catalyst cannot be said to emerge as a result of manufacture. In this regard he relied on the following decisions: (i) Commissioner of Central Excise Vs. I..G. Petrochemical 2015 (324) ELT 21 (S.C.) (ii) Commissioner of Central Excise Vs. Deepak Fertilizers Ltd. & Petrochem Corporation2004 (178) ELT 686 (iii) Rashtriya Chemicals & Fertilizers Ltd. Vs. Collector of Central Excise 1989 (42) ELT 284 (Tribunal) (iv) Amrit V....
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....d that HSN Notes of the said heading clearly prescribed that- This heading does not include: (a) Spent catalysts of a kind used for the extraction of base metals or for the manufacture of chemical compounds of base metals (heading 26.20) and spent catalysts of a kind used principally for the recovery of precious metal (heading 71.12) 2.6. Ld. Counsel further argued that show cause does not disclose under which heading revenue seeks to classify spent catalysts. The show cause notice however notes that earlier the appellant had classified the said product under heading 2620.00. The show cause notice also notices that during the disputed period the appellant had shows the product description spent catalysts under Heading 2....
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....volved herein has been properly analysed by the Commissioner as can be seen above, we do not find any substance in the appeal filed by the Revenue. In the result, these two appeals are dismissed accordingly". Apex Court upheld the order of Tribunal on the following ground: "Delay condoned. Application for substituting the name of the respondent is allowed. Heard the learned counsel for the parties at length. In our view, the order passed by the Tribunal does not call for any interference as the Department has failed to establish that spent palladium catalyst is a marketable commodity. Hence, these appeals are dismissed." Revenue has asserted that the said decision is not applicable in the inst....