ORDER
S.L. Peeran, Member (J)
1. By this appeal, appellants are challenging the Order-in-Appeal No. 609/2002-CE., dated 11-10-2002 by which the waste oil which, has come into existence and not as a result of production or manufacture has been charged to duty.
2. It is the contention of the appellant that the waste oil is not a marketable commodity and therefore it is not liable for duty. In this regard, Larger Bench judgment rendered in the case of Markfed Vanaspathi and Allied Industries and Ors. v. CCE, Chandigarh [2000 (116) E.L.T. 204 (T) = 2000 (36) RLT 170] is relied wherein it has been held that the item, spent earth, residue of activated earth after its use for bleaching and purifying oil, is not excisable as it is neither a manufactured product nor a by-product, though it is sold for some price. Further reliance has been placed on CCE v. Ashok Leyland Ltd. [2003 (151) E.L.T. 438 (Tribunal)] wherein waste oil, lubricants, coolants has been held to be not excisable as waste and scrap. Likewise, reclamation of transformer oil was also held to be not dutiable in the case of Shree Petrochem v. CCE, Pune [2000 (39) RLT 624 (CEGAT). In the case of Continental Petroleum v. CC, Ahmedabad [2001 (137) E.L.T. 1437 (T) = 2000 (37) RLT 280 (CEGAT)], waste oil, which is drained from industrial system after original lubricating preparation was held to have outlived its utility.
3. We have heard both sides in the matter and after careful consideration of the submissions made by both sides we are of the considered opinion that waste oil does not emerge from the process of manufacture and it cannot be made dutiable in the light of the judgments cited, which applies squarely to the facts of the case. Therefore, the impugned order is set aside and appeal allowed.