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2014 (4) TMI 371 - CESTAT BANGALOREManufacture - Excisable goods - marketability - Saw dust - waiver of pre-deposit - Revenue contends that as per the amendment of the definition of "excisable goods" (Section 2(d) of the Central Excise Act) by the Finance Act, 2008 with effect from 10/05/2008, saw dust generated in the course of manufacture of plywood in the appellant's factory also became excisable goods and consequently, from that date, the appellant was clearing both dutiable and exempted goods and was liable to maintain separate accounts in terms of Rule 6(2), failing which they should pay 10%/5% of the value of the saw dust - Held that:- Explanation was inserted w.e.f. 10/05/2008. Applying the amended provision to the facts of this case, I find that the saw dust is a "marketable product". The question, however, remains as to whether it can be considered to be a "manufactured product". It is not the case of the Revenue that the appellant had obtained registration from the Department for the manufacture of saw dust. Undisputedly, the appellant is a manufacturer of plywood. It is not in dispute that saw dust was generated as a waste during the course of manufacture of the excisable product viz. plywood. Saw dust was not consciously and intentionally manufactured. Prima facie, it is not a manufactured product. For any commodity to be called excisable goods, it should satisfy cumulatively both the conditions viz. manufacture and marketability. The amendment cited by the learned Superintendent (AR) only goes to establish marketability. It does not improve the Revenue's case in so for as the question whether saw dust is a manufactured product is concerned. - Stay granted.
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