{"id":130063,"date":"2008-06-02T00:00:00","date_gmt":"2008-06-01T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-central-excise-vs-alkyl-amines-chemicals-ltd-on-2-june-2008"},"modified":"2015-09-23T17:51:20","modified_gmt":"2015-09-23T12:21:20","slug":"commissioner-of-central-excise-vs-alkyl-amines-chemicals-ltd-on-2-june-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-central-excise-vs-alkyl-amines-chemicals-ltd-on-2-june-2008","title":{"rendered":"Commissioner Of Central Excise vs Alkyl Amines Chemicals Ltd. on 2 June, 2008"},"content":{"rendered":"
Customs, Excise and Gold Tribunal – Mumbai<\/div>\n
Commissioner Of Central Excise vs Alkyl Amines Chemicals Ltd. on 2 June, 2008<\/div>\n
Bench: M Ravindran, A T K.K.<\/div>\n<\/p>\n
<\/pre>\n
ORDER<\/p>\n
M.V. Ravindran, Member (J)<\/p>\n
1. This appeal is filed by the Revenue against Order-in-Appeal No. RJB\/M-III\/209-210\/2003 dated 23.04.03 and the respondents have also filed Cross Objection.\n<\/p>\n
2. Heard ld. JDR and perused the submission made by him. None appeared on behalf of the respondents despite notice. Since the issue involved lies in narrow compass we taken up the appeal for disposal in the absence of any representation from the respondent.\n<\/p>\n
3. The issue involved in this case is regarding the duty liability on the Spent Nickel Catalyst’s which arises during the course of manufacturing of final products. The respondents have been claiming the same as not excisable. We find that the ld. Commissioner (Appeals) while arriving at the conclusion had rejected the Department’s appeal and allowed the appeal of the respondents by holding as under:\n<\/p>\n
In other words, what the Supreme Court said was that if the intention of the legislation is to levy duty on waste and scrap, then it can do so and such an entry will find mention in the respective tariff heading. For example, waste and scrap of plastics has been mentioned under Chapter heading 3915 of the Central Excise Tariff Act, 1985. Similarly, waste and scrap of iron and steel and copper also find a specific mention in the respective chapter headings. This is, however, not the case with the Nickel Catalyst. Thus, in the absence of a specific tariff entry, waste arising in the course of manufacture is not dutiable. Simply because a particular commodity fetches some value and can be marketed, it cannot be said that it is a manufactured product. This has been stated by the Supreme Court in respect of CCE, Patna v. Bansal 2003 (151) 3 (SC). This apart the Supreme Court in the case of CCE, Bombay v. Hindustan Lever Ltd.  has held that Spent Nickel Catalyst arising during the hydrogenation of soaps is not dutiable since the Department failed to prove that it is a marketable commodity. It is also a settled law that during the process of manufacture, the product undergoes some changes and the input is not the same as the finished product. The Spent Nickel Catalyst, which is used time and again is not a finished product but waste as the word ‘spent’ itself indicates. Similarly, refuse or scum or waste generated during the process of manufacture also cannot be considered as a by-product, as mentioned earlier in the Supreme Court judgment in the case of Carbide Sludge and also in the following cases:\n<\/p>\n
(1) Commr. of C. Ex. v. Bansal Industries 2003 (151) ELT 4 (SC)<\/p>\n
(2) Commr. of C. Ex. v. Titawi Sugar <\/p>\n
Therefore, reliance of the Department on the Supreme Court judgment in the case of M\/s. Khandelwal Metal and Engg. Works cannot be of any use to them. Reliance on the case of V.K. Oils Pvt. Ltd. is also not available to the Department as this decision is distinguishable inasmuch As the question of addition of value of Spent Nickel Catalyst supplied free for arriving at value of finished goods was discussed, which is not the case here. In the case of CCE, Jaipur v. Mehta Vegetable Products , it was held that Spent Earth and Spent Nickel Catalyst emerging as residue do not arise out of manufacture. I therefore do not find any justification in the appeal filed by the Department for classification and, therefore, liability to duty.\n<\/p>\n
5. Denatorium Saccharide:- So far as Denatorium Saccharide is concerned it is seen that it was sent to distillery unit for denaturing Ethyl Alcohol which is an input for the appellant. The Alcohol is denatured so as to make it unfit for human consumption. Though Denatorium Saccharide is not used in the manufacture of the final product, but it is used to denature Ethyl Alcohol as a whole. Thus, the fact remains that Denatorium Saccharide is used in the manufacture of the final product. Rule 57D(2) provides that Modvat credit on inputs can be availed even if the same are used through an intermediate product which may not he excisable. I, therefore, do not find if the Department is right so far as the issue of Denatorium Saccharide is concerned. The Commissioner (Appeals) Central Excise & Customs, Mumbai VII had also allowed this vide Order-in-Appeal No. ZBN\/397\/M.VII\/2000-01 dt. 08.01.2001 in respect of M\/s. Alkyl Amines Chemicals Ltd. themselves. The department had filed an appeal against the order of the Commissioner (Appeals) before CEGAT. The Hon’ble CEGAT had also dismissed the department appeal vide its Order No. C. II\/2521-231 WZB\/2001 dt. 08.10.2001.\n<\/p>\n
4. It may be seen from the above reproduced part of the impugned order, the appellate authority has correctly followed the law as laid down by the Tribunal in the respondent’s own case. As such, we find that the order-in-appeal is a well reasoned one and does not require any interference. Accordingly, the appeal filed by the Revenue is rejected and Cross Objection filed by the respondents is also disposed of.\n<\/p>\n
(Dictated in Court)<\/p>\n","protected":false},"excerpt":{"rendered":"
Customs, Excise and Gold Tribunal – Mumbai Commissioner Of Central Excise vs Alkyl Amines Chemicals Ltd. on 2 June, 2008 Bench: M Ravindran, A T K.K. ORDER M.V. Ravindran, Member (J) 1. This appeal is filed by the Revenue against Order-in-Appeal No. RJB\/M-III\/209-210\/2003 dated 23.04.03 and the respondents have also filed Cross Objection. 2. Heard […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-130063","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"\nCommissioner Of Central Excise vs Alkyl Amines Chemicals Ltd. on 2 June, 2008 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/commissioner-of-central-excise-vs-alkyl-amines-chemicals-ltd-on-2-june-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commissioner Of Central Excise vs Alkyl Amines Chemicals Ltd. on 2 June, 2008 - 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