D.C. Mandal, Member (T)

1. The question to be decided in this appeal is whether the "Spent Wash" is chargeable to Central Excise duty under Item 68 of the Central Excise Tariff. The Assistant Collector of Central Excise charged duty of Rs. 3,767/- in respect of spent wash cleared by the Appellants. On appeal, the order of the Assistant Collector was set aside by the Collector of Central Excise (Appeals), New Delhi, by the impugned order. The Collector (Appeals) held as follows :-

"The appellants have, however, explained that Spent Wash was generated during the course of distillation in their manufacturing premises and as this was water pollutant and was capable of damaging the standing crops etc., they were draining it out to a distance of 1.5 Kms. away from the factory and treating it biologically/chemically. This would demonstrate that Spent Wash as such was neither consumable nor was of any use to the appellant. It is at a distance of 1.5 Kms. away from the factory that it was drained and was made fit for use for irrigation purposes and the water as such was distributed free of cost. The remnant was Sludge which was dried in the open fields and sold as manure. It does not app