SNEH SILICATE INDS. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) The issues raised in these appeals are the same. Therefore, the appeals were heard together and are disposed of under this common order.

(2.) Facts first. M/s. Hindustan Lever Ltd. has a factory in Chhindwara, Madhya Pradesh producing, inter alia, sulphuric acid. During the manufacture of the said acid, waste material arises which is called 'Scrubber Liquor'. This liquor contains sodium silicate and soda ash in small quantities; but for the presence of these items it is only water. Scrubber liquor is a pollutant. Therefore, its disposal is covered by Pollution Control Orders. Disposal also involves expenditure.

(3.) In and around Chhindwara are located some units engaged in the manufacture of sodium silicate. The manufacture of sodium silicate is water intensive. Water is required to be added to adjust the viscosity of sodium silicate. The scrubber liquor, though normally a polluting material, can safely substitute for water in the case of sodium silicate. Thus arises a match between the waste disposal problem of Hindustan Lever Ltd. and the water requirement of Sodium Silicate Manufacturers. Accordingly, an agreement was reached between the two sides for the supply of scrubber liquor by Hindustan Lever Ltd. to Sodium Silicate Manufacturers. Hindustan Lever Ltd. was paying central excise duty and sales tax on scrubber liquor. It was agreed that the scrubber liquor shall be supplied to Sodium Silicate Manufacturers free, except for the central excise duty and sales tax. In the invoices, the price (at which duty was calculated) was being shown as rebate.