Customs, Excise and Gold Tribunal - Mumbai
Cce vs Deepak Fertilizers And Petro Corp. Ltd. on 21 September, 2004
Equivalent citations: 2004(117)ECR395(TRI.-MUMBAI), 2004(178)ELT686(TRI-MUMBAI)
ORDER S.S. Sekhon, Member (T)
1. After hearing both sides and on considering that Spent Catalyst, the entity, under dispute herein, arises from a Catalyst used, which by definition is not Raw Material & considering the settled position in law as per the Apex Court decision in the case of Ahmedabad Electricity Co. Ltd. 2003 (158) ELT 3 SC : 2003 (111) ECR 274 (SC) wherein it has been held-
32 ...For being produced and manufactured in India the raw material should have gone through the process of transformation into a new product by skilful manipulation Excise duty in an incidence of manufacture and therefore it is essential that the product sought to be subjected to excise should have gone through the process of manufacture....f The levy of Central Excise Duty on Catalyst Spent by use, as such, cannot be upheld. Transformation of a Catalyst into Spent Catalyst cannot amount to manufacture as per the test of Apex Court in the case of Ahmedabad Electricity Co. Ltd.
2. When manufacture does not take place, there can be no consequence under the Central Excise Act 1944. The reliance of the Ld. Advocate on this Bench order in the case of Nirwe Ltd (C-II/84/WZB/04 dated 7.1.2004 is well founded. We follow the same.
3. Consequently appeal is allowed.
(Pronounced in Court.)