BALLARPUR INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) 1 Appeal Nos. E/2965/2006, E/406 -08/2009, E/855/2010, E/519/2010, E/ 730/2010 involve a common issues.

(2.) HEARD both sides.

(3.) 1 Learned Advocate for the Appellants submits that they are using quality pulp generated during the integrated process for further manufacture of paper. Waste collected at centri cleaners of two of the paper making machines were sent through the effluent treatment plant and the resultant waste referred to as 'sludge' is disposed off. In respect of waste collected at centricleaners of four other machines, the same is treated through 'hydratreator' and the resultant product contains only 10 to 15% fibrous material, 70% moisture and the rest is inorganic substance. The wood pulp they used for further manufacture in their factory contained about 99% fibre and only 1% inorganic content. However, purchaser of such waste pulp can use the same for manufacture of cheap grade paper boards, that too only after enriching it. In view of the above, the waste pulp cannot be treated as arising out of manufacture but as a waste arising during the course of manufacture. The said product cannot be treated as excisable goods. Once it cannot be considered as excisable goods, the question of treating the same as exempted product does not arise. Under such a situation, the Appellants should not be treated as manufacturing both dutiable and exempted products. The question of demand of any amount in terms of Rule 57AD(2)(b) CER, 1944 and Rule 6(3)(b) of CCR Rules, 2004, therefore, does not arise.