Customs, Excise and Gold Tribunal - Delhi
Nav Bharat Banaspati And Allied Indust. vs C.C.E. on 20 December, 1996
Equivalent citations: 1997(92)ELT127(TRI-DEL)
ORDER S.S. Kang, Member (J)
1. The appellant filed this appeal against the Order-in-Appeal No. 6-C.E./CHD/91, dated 31-12-1990 whereby the Commissioner confirmed the demand of duty leviable on spent earth manufactured by the appellant during the course of manufacture of vegetable product.
2. Learned Counsel appearing for the appellant submitted that appellants are engaged in manufacture of vegetable products falling under Heading 1504.00 of Central Excise Tariff Act, 1985. He further submitted that appellants used activated earth in the manufacture of vegetable product as the bleaching agent. After some time this activated earth loses its bleaching ability and emerges as spent earth which is sold by the appellant. He relied upon the decision of the Tribunal in the case of Modi Vanaspati Manufacturing Company v. CCE reported in 1990 (47) E.L.T. 57 and decision of the Tribunal in Hindustan Lever Ltd. v. CCE reported in 1985 (22) E.L.T. 232 and pleaded that spent bleaching earth is a waste material arising in manufacture of vegetable product and it is not a good. Hence it is not liable to duty.
3. Shri A.K. Madan, SDR appearing of the respondent reiterated the finding of the lower authorities.
4. Heard both sides. In this case the appellants are engaged in manufacture of vegetable product and then used activated earth in the manufacture of vegetable product as a bleaching agent and after some time this activated earth loses its bleaching ability and emerges as spent earth. The respondents are demanding duty on this spent earth. The Tribunal in the case of Modi Vanaspati Mfg. Co. v. CCE (supra) held that the spent earth arising from activated earth during the manufacture of vegetable product, not being a result of manufacture under Section 2(f) is not liable to Central Excise duty. Applying the ratio of the decision of the Tribunal in the case of Modi Vanaspati Mfg. Co. (supra) the impugned order is set aside and the appeal is allowed.