D.C. Mandal, Member (T)

1. The point for decision in these cases is whether spent bleaching earth was chargeable to Central Excise duty under Item 68 of the erstwhile Central Excise Tariff. The bleaching earth used in the manufacture of Vanaspati as a catalyst becomes useless and the appellants call it spent bleaching earth or a waste material. The lower authorities have held that the material is capable of being sold and is actually sold by the appellants and hence it satisfies the test of "goods" and is chargeable to duty under residuary Tariff Item 68.

2. We have heard Shri Vipin Garg for the appellants and Shri A.S. Sunder Rajan for the respondent. Shri Garg has argued that spent bleaching earth is a waste material arising in the course of manufacturing vegetable product and hence no Central Excise duty was payable on this waste material. In support of this argument, he has relied on the judgment of Delhi High Court in the case of Modi Rubber Ltd. v. Union of India, reported in MANU/DE/0291/1986 : 1987 (29) E.L.T. 502 (Del.) and this Tribunal's decisions reported in MANU/CE/0340/1987 : 1988 (33) E.L.T. 639 (Tri.) in the case of Mis. Kusum Products Ltd. v. Collector of Centra