Customs, Excise and Gold Tribunal - Mumbai
Hindustan Lever Ltd. vs Commissioner Of Central Excise, Mumbai ... on 2 May, 2001
Equivalent citations: 2001(138)ELT569(TRI-MUMBAI)
ORDER
Gowri Shankar, Member (Technical)
1. The application is for waiver of deposit of duty of Rs 56,202/- and a penalty of Rs 5000/-.
2. The applicant receives crude glycerine from its manufacturer for refining and return. Part of the crude glycerine consists of insoluble salt, which settles at the bottom of the tanker trucks in which it is transported from the premises of its manufacturer to the applicant's premises. The applicant drains off the glycerine, disposing of the sediments in a manner that it is unspecified. What has been demanded is the duty paid on that part of the crude glycerine which consists of the sediments of insoluble salt, on the ground that it is not used in or in relation to the manufacture of the finished product, the refined glycerine.
3. The contention of the counsel for the applicant, that the insoluble salt consists of waste, refuse or by product and therefore is covered by Rule 57D (1), cannot be accepted at this stage for want of evidence. Apart from the fact that there is no ground in the appeal that such salt consists of waste, refuse of by product which the counsel for the applicant, after going through the documents, does not dispute, there is nothing to show that this salt is in fact disposed of as such waste, refuse or by product, and is not used in manufacture of any other product.
4. Accordingly, I direct deposit of the entire duty demanded by reversal in the modvat account of the applicant. Compliance to be shown within a month from to day, thereupon I waive deposit of the penalty and stay its recovery.
5. Compliance on 15.6.2001.