2026 (2) TMI 835

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... The appellants use various solvents like acetone, ethyl acetate, methanol etc., in the manufacture of bulk drugs, which are dutiable in nature. The solvents are used as catalysts along with other raw materials to process chemical reaction and also used to wash the chemicals. These solvents are used over and again in the manufacture of bulk drugs. The impurities arising in the course of manufacture, got deposited in those solvents and after a certain point of time, the solvents get saddled with impurities and are not fit for further use in the factory for the intended purpose. Therefore, the appellants sold the said recovered mixture of spent solvent, without payment of central excise duty. Non-payment of central excise duty on the mixture....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er No. A/85674/2024 dated 05.07.2024 is extracted herein below:- "3. The period of dispute involved in the present appeal is from January 2013 to September 2013. For the earlier period i.e., September 2006 to December 2012, similar dispute was raised by the department, which was resolved by the Tribunal vide order dated 29.03.2017, holding that the solvents removed from the factory are not excisable goods and as such, no Central Excise duty is required to be recovered from the assessee. In the said order, the 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....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e of the solvents during the course of manufacturing of final products. The appellant's claim that these goods are not excisable is supported by the judgment of the Tribunal in the case of CCE, Hyderabad v. Aurobindo Pharma Ltd. reported in 2010 (249) E.L.T. 415 (wherein I authored the judgment). The relevant paragraphs in the said judgment of Aurobindo Pharma Ltd. need to be reproduced:- "3.2 The assessees are engaged in the manufacture of Bulk Drugs and Bulk Drugs Intermediates. They use solvents such as Methanol, 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 r....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....irmed by the Hon'ble High Court and maintained by the Hon'ble Supreme Court, the ratio would apply in the case in hand and the demands raised prior to 10-5-2008 needs to be set aside. 9. As regards the demands raised by the Revenue post 10-5- 2008 for which duty provisions of Section 2(d) has been invoked, needs to be addressed now. The said provisions of Section 2(d) defines excisable goods and states that for the purposes of this subsection, goods includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable. In the cases in hand, from Appeal Nos. 86521 to 86526/13, 85825/14 and 85851/14, the period involved is post 10-5-2008. Even with th....