TMI Blog1996 (3) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... ber (J)]. The above appeals arise out of the order of the Collector (Appeals), Central Excise, Allahabad confirming the orders of the Assistant Collector by which he had classified Carbide Sludge arising in the course of manufacture of acetylene gas by the appellants under Chapter sub-heading 2849.90 of the CETA, 1985 and confirming demands of duty of Rs. 18,216/- and Rs. 3,520/-. However th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into cylinders. the ash of calcium carbide is left in the water after release of acetylene gas. This waste is thrown outside in pits. This waste is commonly known as carbide sludge. The above process is explained by the following chemical formula : Ca C2 2H2O - C2H2 Ca(OH)2 In other words when acetylene gas (C2H2) is drawn from calcium carbide (CaC2) after adding water (2H2O) to it, what is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sable. In a recent decision reported in 1995 (77) E.L.T. 268 in the case of Union of India v. Indian Aluminium Company the Hon ble Supreme Court has held that the aluminium dross and skimmings are not goods or marketable commodities which can be subjected to levy of excise, though, undoubtedly, they do arise during the process of manufacture. The Supreme Court has held that it may be possible to r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alcium carbide or other carbides. The only ground on which the carbide sludge had been held to be excisable is that, it is being sold for a price which cannot be valid ground to determine the excisability of this item. 5. Following the ratio of the above cited decisions, we hold that the carbon sludge is not an excisable commodity and hence, set aside the demands and penalties. - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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