The petitioner, manufactures paper and paper boards. In the course of such manufacture, certain items are being received as 'waste'. The petitioner addressed a communication, dated 7.12.1979, to the Assistant Collector of Central Excise, Salem in the following terms:-

"Seshasayee Paper and Board Ltd.

Sl/730/1130 7th December, 1979

The Asstt. Collector of Central Excise,

Salem I.D.O. Salem 636 007

Dear Sir,

Re: Sale of waste

In the course of manufacture of paper, the following items are received as waste:

1. Causticizing lime sludge (50% dry)

2. Effluent sludge (40% dry)

3. Causticiaing hypo grits

4. Clinker ash

5. Fine ash

6. Chipper House dust.

All these years we have been throwing away the above products as waste except in the case of causticizing lime sludge in which a small quantity was sold to Messrs. India Cements and on which duty was demanded. An appeal was also filed with Appellate Collector of Central Excise, who has since passed orders in this regard. It is, of course, our contention that we are not liable to pay duty on lime sludge in view of the fact that it is a waste product. We have now been getting some enquiries from parties who are interested in buying the above 6