2019 (2) TMI 10

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....rocess, appellants use various solvents like Acetone, Iodine, Calcium Fluoride, Sulphuric Acid, Methanol, etc. Post manufacturing process, spent solvents arise as mother liquor. Such spent solvents are sold by the appellants. 2. The Department took the view that their tax liability would arise on the clearances of such spent solvents, which are sold by them. Further, the appellants use furnace oil and lubricating oil for their Captive Power Plant, which are kept in the storage tank. The residue of oil that remains in the tank in the form of sludge is cleared and sold as part of the cleaning and sanitization process by the appellant. The Department took the view that on such clearances of sludge also duty liability would have to be discharg....

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....rect in his assertion that the matter is covered by the decisions cited by him. The Hon'ble Apex Court in the case of M/s. Grasim Industries Ltd. (supra) relied upon by the Ld. Advocate for the appellant, in paragraph 8 of the judgement, has held as under : "8. The goods have to satisfy the test of being produced or manufactured in India. It is settled law that excise duty is a duty levied on manufacture of goods. Unless goods are manufactured in India, they cannot be subjected to payment of excise duty. Simply because a particular item is mentioned in the First Schedule, it cannot become exigible to excise duty. [See Hyderabad Industries Ltd. v. Union of India, (1995) 5 SC 338 = 1995 (78) E.L.T. 641 (S.C.), Moti Laminates (P) Ltd v. CCE, ....