THEMIS CHEMICALS LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) FROM a reading of the show cause notice, allegation as made out in the said show cause notice dated 3 -1 -1992 issued by the concerned C.C.E. was that the appellants herein had cleared 333,337 kgs. waste chemicals (solvent) etc. outside the factory and these waste chemicals had emerged during the course of manufacture of Dane's salt in 100% EOU. It was also alleged in the show cause notice that the said unit had not classified the said waste chemicals (solvent) though it was classifiable under chapter Sub -heading 3832.00 and chargeable to duty at the rate of 15% ad valorem as specified against the said Chapter Heading. It was also alleged that the said unit had also not filed price list to the proper officer nor they issued any Central Excise Gate -passes determining the payment of Central Excise duty leviable thereon. Further allegation was that the unit had not maintained any statutory record for production and disposal of the said waste. Amount of duty alleged to be evaded by clearance of the said waste was worked out at Rs. 6,13,968.58(BED) plus Rs. 22,760.67(SED) totally amounting to Rs. 6,36,729.25.

(2.) LEARNED Advocate on the basis of the aforesaid finding has submitted that in view of the allegations in the show cause notice and in view of the aforesaid finding that the waste had arisen not in the manufacture of Dane's salt but in the course of manufacture of bulk drugs in their own factory the demand of duty is not sustainable against the 100% EOU inasmuch as the show cause notice has been given to the 100% on the allegation that the waste has arisen in the course of manufacture of Dane's salt. Learned Advocate submits that on this ground itself the impugned order is not sustainable and deserves to be set aside.

(3.) LEARNED SDR, Shri K. Srivastava reiterates the findings of the adjudicating authority.