RAJASHREE CEMENT Vs. CCE

JUDGEMENT

(1.) THE following appeals have been filed against impugned orders OIO dtd. 15.3.2001 and OIA dtd. 8.2.2002.

(2.) THE Adjudicating authority has held that used oil is excisable as it falls under 2713.30. He has demanded a duty of Rs. 6,075/ - under Section 11A(2) of the Central Excise Act. Further, he has imposed a penalty of Rs. 6,000/ - on the appellants under Rule 173Q of the CE Rules.

(3.) THE learned Consultant contends that the appellant uses different types of lubricants for maintenance and after a long use the same becomes waste oil. He contended that the used oil cannot be classified as "Other Residues of Petroleum Oils". He relied on the Tribunal decision in the case of Continental Petroleum, 2000 (37) RLT 280 wherein it has been held that the Waste Oil drained from the industrial system after original lubrication has outlived its utility and, therefore, not excisable. He also relied on a decision of the Larger Bench in the case of Marked Vanaspati and Allied Industries v. CCE, Chandigarh wherein it has been held that Spent Earth is not dutiable merely because it is marketable. The Tribunal has ruled that even if an article finds mention in a specific sub -heading of the Schedule, it has to satisfy the test of the manufacture, before it can be subjected to the levy of the excise duty.