1. Dispute regarding the levy of duty on diluted sulfuric acid remaining after use. (Para 1 )
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1995 Supreme(SC) 319
SUPREME COURT OF INDIA
B.P.Jeevan Reddy : S.C.Sen
Collector Of Central Excise, Patna
Versus
Indian Tube Company Limited
Case No. : 442 of 1989
Date of Decision : 3/2/95
Diluted sulfuric acid remaining after use is not considered a "manufactured" product and is therefore not subject to excise duty.
Headnote:(A) Central Excise Law - Manufacture - Diluted sulfuric acid, being the liquid remaining after use, does not constitute "manufacture" by the user; consequently, no excise duty can be levied on such residue. (Para 1)
Facts of the case:
The dispute concerned whether the diluted sulfuric acid remaining after use by a company could be classified as a manufactured product subject to excise duty.
Findings of Court:
The court upheld the tribunal's view that the liquid remaining after use cannot be said to have been manufactured.
Issues: Whether the diluted sulfuric acid remaining after use constitutes "manufacture" for the purpose of levying excise duty.
Ratio Decidendi: Since the diluted sulfuric acid is merely the residue remaining after the use of the acid, it does not undergo a process of manufacture and therefore cannot be taxed as a manufactured product.
Result: Appeal dismissed.
Legal Category Hierarchy
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tax law
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excise duty
- manufacture (Para 1)
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excise duty
Table of Contents
2. Whether liquid remaining after the use of sulfuric acid constitutes manufacture for the purpose of levying duty. (Para 1 )
3. Diluted sulfuric acid remaining after use cannot be classified as having been manufactured by the respondent. (Para 1 )
4. Liquid remaining after the use of a substance does not constitute manufacture and is therefore not subject to duty. (Para 1 )
5. Appeal dismissed; no duty levied on the diluted sulfuric acid. (Para 1 )
6. Does liquid remaining after the use of a substance constitute manufacture for duty purposes?
No, diluted sulfuric acid that remains after use cannot be said to have been manufactured by the user, and consequently, no duty can be levied on it. (Para 1 )
(1) THE tribunal is right in saying that the diluted sulfuric acid,that is the liquid which remains after user, cannot be said to have been manufactured by the respondent and, therefore, no duty can be levied thereon. The appeal is dismissed accordingly.
