CIR NO. 729/45/2003-CX DATE 30/07/2003
Hon’ble Supreme Court judgment in the case of CCE Ahmedabad Vs Nirma Chemical Works Ltd.
Kind attention is invited to the above mentioned judgment of the Hon’ble Supreme Court. In this case M/s Nirma Chemical Works Ltd., Ahmedabad were manufacturing Nirma Detergent Powder, waste of detergent powder and Acid Slurry falling under Chapter 34 of CETA 1985. In classification list filed by the party in respect of various products, spent sulphuric acid waste was classified under Chapter 28 but had claimed exemption in respect of such quantities of waste which were intended for use in the manufacture of fertilizers in terms of Notification No. 81/75. Hon’ble Tribunal had however confirmed spent acid not as sulphuric acid classifiable under Heading 28.07 but chemical product under Chapter 38.23. However, spent sulphuric acid produced as a by-product in the form of waste/residue during the process of manufacture of Acid Slurry/detergent powder is to be considered as a manufactured product being a separate chemically defined compound or separate chemical element classifiable under S.H. No. 28.07 of CETA, 1985. The Hon’ble Court has inter-alia held as under:-
"The only question involved in this appeal pertains to the classification of Spent Sulphuric acid which the Trinunal by the impugned order has held to fall under Heading 38.23 whereas it is the contention of the Revenue that the same falls under heading 28.07. Mr. M.D. Dave, learned senior counsel appearing for the respondent fairly concedes that in view of the larger bench judgment of the Tribunal in Collector of Central Excise, Ahmedabad vs Keti Chemicals 1999 (113) ELT 689 (Tribunal) this issue is now settled and the said Spent sulphuric acid also falls under Heading 28.07 with which view respondent has no quarrel. Recording this statement of the learned senior counsel, we set aside the impugned order of the Tribunal and hold that Spent sulphuric acid is to be classified under Heading 28.07 of the Tariff Item. The appeals are allowed accordingly".
The above judgment is in favour of the Revenue. I am therefore, directed to request you to circulate this judgment to all the field formations under your charge for information.
Please acknolwedge receipt of this letter.
Sd/-
(Sungita Sharma)
Director (Review)
[F.No. 385/943-45/92-JC(Pt.)]
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