2024 (7) TMI 1746

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....hedule to the Central Excise Tariff Act, 1985. In the process of manufacture of bulk drugs, the appellants use various solvents like Acetone, Ethyl Acetate, Methanol, Toluene, Tetraphydrofuron, Dimethyl formamide, Acetonitrile etc., which are liable for payment of Central Excise duty. The solvent are used as catalysts along with the other raw materials to process the chemical reaction and also used to wash the chemicals. These solvents are used over and over again in the manufacture of bulk drugs. The impurities arise in the course of manufacture get deposited in these solvents. After a certain period of time, the solvents get saddled with impurities and are not fit for further use in the manufacturing process. Thus, the appellants sold the....

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....Tribunal has referred to the order of the Co-ordinate Bench passed in the case of CCE Hyderabad Vs. Aurobindo Pharma Ltd. [2009 (3) TMI 455- CESTAT-BANGLORE]. The relevant paragraphs in the order dated 29.03.2017 are extracted herein below: "7. The issue needs to be decided in the case in hand is whether the mixture of solvents, which is sold by the appellant, is excisable products or not for the period prior and post 15-6- 2008. It is undisputed that the mixture of solvents, which is cleared by the appellant, is mixture solvents obtained after considerable reuse, which cannot be reused by the appellant in their factory premises and the said solvents are cleared on the invoices from the factory premises of the appellant. It is also....

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....hanol, Toluene etc., in the manufacture of the said products and availing Modvat credit on the above said inputs/solvents. In the manufacturing process of the said finished goods, solvents such as Methanol, Toluene etc., are recovered and the same are re-used in the subsequent batches for four to five times till they become non-usable in the process. Then the assessees are clearing the recovered/distilled/spent solvents which contain 80 to 90% of Methanol, Toluene etc., by declaring them as "industrial waste solvents". 6. We have considered the submissions made at length by both sides and perused the records. We find that in the case of the respondent i.e. Aurobindo Pharma Ltd. (supra), this Bench has held that the issue in favour ....