TMI Blog2014 (4) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... ling under the Head 4707 90 00. The said heading 4707 relates to (recovery of waste and scrap) paper or paper board. The sub-heading 47 07 90 00 specifies unsorted waste and scrap. In as much as the entry relates to waste and scrap of paper or paper board and not to sludge and pulper waste, the same cannot be held to be covered by the said entry - Decided in favour of assessee. - Appeal No.E/2039/2011-EX[DB], Appeal No.E/2162/2012-EX[DB], Appeal No.E/3763/2012-EX[DB] - Final Order Nos.50888-50890 - Dated:- 7-3-2014 - Mrs. Archana Wadhwa and Mr. Manmohan Singh, JJ. For the Appellant : Shri Rakshit Verma, Advocate For the Respondent : Shri B.B. Sharma, Advocate JUDGEMENT Per Hon ble Mrs. Archana Wadhwa : All the three appeals are being disposed of by a common order as the issue involved is identical. The appellants are engaged in manufacturing of paper, paper board out of waste paper as their main raw-material. During the process of manufacture of paper, sludge is formed in Effluent Treatment Plant (ETP) where water of the plant is purified for re-use. Such sludge is being sold by the appellants on different intervals. During the process of manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in Section 2(d), the bagasse aluminium, zinc dross and other such products termed as waste, residue or refuse which arise during the course of manufacture and are capable of being sold for consideration would be excisable goods and chargeable to payment of excise duty. 5. Ld. Counsel for the appellants has strongly contended that in as much as the sludge and the pulper waste and refuse is nothing but the refuse which comes into existence during the course of manufacture of paper, it cannot be said that they have manufactured the said sludge and pulper waste. Merely because the appellants are disposing of this sludge and the pulper waste against consideration would not make the said products arising as a result of manufacture. He has relied upon the Tribunal decision in the case of Indian Potash Ltd. Vs. C.C.E., Allahabad reported in 2012 (281) E.L.T. 622 (Trib - Del.). 6. It was also submitted before us that the Board Circular strongly relied upon by the lower authorities has been quashed by the Hon ble High Court of Allahabad in the case of Balrampur Chini Mills Ltd. Vs. Union of India, vide their order dated 18.05.2012. The appellants also claimed exemption, if the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Central Excise Tariff Act, 1985 as amounting to manufacture or which involves packing or re-packing or labelling or re-labelling of container or declaration or alteration of retail sale price or adoption of any other treatment on the goods to render the product marketable to the consumer. Admittedly, the sludge as also pulper waste emerges during the course of manufacture of paper and paper board and such emergence is inevitable. The same cannot be held to be any incidental or ancillary process to the completion of a manufactured product. Similarly, there is no deeming provision under any section or Chapter notes so as to hold the said emergence of waste in the shape of sludge or pulper waste, as amounting to manufacture. Admittedly, the third situation involving packing or re-packing, labelling or re-labelling or declaring MRP, etc. on the said sludge and paper waste is not involved in the present cases. As such, the emergence of sludge and pulper waste during the course of manufacture of paper or paper board cannot be held to the result of any manufacturing activity. 10. The lower authorities have relied upon the addition of explanation to Section 2(d) of the Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, which can be subjected to the levy of excise. Undoubtedly, aluminium dross and skimmings do arise during the process of manufacture but these are nothing but waste or rubbish which is thrown by in the course of manufacture. 11. At this stage, we may take note of the Tribunal s decision in the case of Indian Potash Ltd. Vs. CCE, Allahabad reported in 2012 (281) E.L.T. 622 (Tri.- Del.), wherein after taking note of the addition of explanation to the provisions of Section 2(d), Tribunal held that the beggass, which emerges by way of crushing sugarcane to extract sugar juice is a waste product. The amendment in the Finance Act, 2008 would not make any difference in the facts and circumstances of the case. The said decision stands followed by the Tribunal in a number of decisions wherein it has been held that the press mud emerging as waste material during the course of manufacture of sugar from sugar juice cannot be held to be an excisable product. Reference in this regard can be made in Tribunal s Final Order in the case of M/s. Kisan Sahkari Chinni Mills Ltd. Vs. C.C.E., Lucknow in Appeal No.2978/2011, dated 23.05.2012 and M/s. Manakpur Chini Mills Vs. C.C.E., Allahabad in App ..... X X X X Extracts X X X X X X X X Extracts X X X X
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