V.T. Raghavachari, Member(J)

1. The appellants M/s. Indian Tube Co. Ltd. subject steel pipes and tubes to the process of pickling for removal of the scale formation thereform. The hot rolled strips were also being subjected to similar process. For the purpose of pickling, sulphuric acid is diluted with water and kept in a tank. The pipes, tubes etc. are kept in cradles and then dipped into the diluted acid so that the removed of the scale is done uniformly on the inner as well as outer surfaces. The steel strips fitted in cages are also similarly rotated inside the tank. After the acid had been used for a while in this manner it loses its effectiveness and is thereafter removed. According to the appellants removal was by way of supply of the same to another concern by name M/s. Cynamides Pigments. No charge were being collected therefore and in fact the appellants paid the transportation charges themselves. This was done to avoid the cost of neutralisation without which this dangerous effluent could not be sent out of the factory.

2. Show cause notice was issued to them calling upon them to show cause why duty ought not to be demanded on removal of the waste pickle liquor from